U.S. stocks moved away from early losses to trade higher on Wednesday as investors returned to a market still cautious from the Dow Jones Industrial Average’s historic decline earlier this week.
At 10:09 a.m. ET, the Dow Jones Industrial Average was up 228.25 points, or 0.92 percent, at 25,141.02. The S&P 500 gained 19.12 points, or 0.70 percent, to 2,714.26 and the Nasdaq Composite increased 22.72 points, or 0.32 percent, at 7,138.60.
The S&P 500 index showed 2 new 52-week highs and no new lows, while the Nasdaq recorded 13 new highs and 21 new lows.
“It looks like a little bit of a stabilization trade overnight,” said John Brady, senior vice president at futures brokerage in Chicago. “I don’t know if it’s over, but a market range may be established.”
Gains in industrial and consumer discretionary stocks led advances on the S&P and the Dow. Boeing and United Tech gained about 1.5 percent, leading the boost for the Dow, while Amazon’s 1 percent rise pushed up the S&P. The S&P energy index was up over 1 percent, led by Anadarko Petroleum’s 5 percent gain and an increase in oil prices.
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Tuesday was a volatile day for the Dow, swinging over 1,100 points from peak to low and ending the session with the benchmark S&P 500 taking in its best day since before President Donald Trump’s 2016 election.
Investors are prepared for more volatility as they try to decipher if this is just temporary or a deeper correction will take place. The crucial gauge of S&P 500 volatility, the VIX opened high at 31 points and slipped to 21.74.
President Trump continuously speaks on the gains Wall Street has recorded during his first year in office. On Wednesday, Trump dismissed the market’s recent landslide, stating stocks should not fall amid strong economic news.
“In the ‘old days, when good news was reported, the Stock Market would go up. Today, when good news is reported, the Stock Market goes down. Big mistake, and we have so much good (great) news about the economy!” Trump tweeted.
Advancing issues outnumbered decliners on the NYSE by 2,068 to 720. On the Nasdaq, 1,596 issues rose and 1,056 fell.