The Nasdaq Composite rose in trading on Wednesday as investors tried to find their footing after more than two years of one-day declines.
The Nasdaq rose 0.74% to 11,719.68. The S&P 500 added 0.34% to close at 3,946.01. The Dow Jones industrial average rose 30.12 points, or 0.10%, to 31,135.09, after falling more than 200 points off session lows.
Moderna was one of the best performers on the Nasdaq, advancing more than 6%. Tesla rose 3.6% and Apple rose 1%.
Moderate gains followed Tuesday’s heavy sell-off in stocks. The Dow fell more than 1,200 points, or nearly 4%, while the S&P 500 lost 4.3%. The Nasdaq composite fell 5.2%. It was the biggest one-day slide for all three averages since June 2020.
The drop triggered The Consumer Price Index report for August showed headline inflation Gas prices rose 0.1% on a monthly basis, despite a drop in gas prices.
The tepid inflation report raised questions about whether stocks will return to June lows or fall further. It also fueled some fears that the Federal Reserve might will raise interest rates even further Markets are pricing in more than 75 basis points.
“Tuesday’s sell-off is a reminder that we will need clear evidence of a downward trend in inflation. We expect markets to remain volatile in the coming months as macroeconomic and policy uncertainty rises,” said Mark Hafel, CIO of UBS Global. Wealth Management said in a note to clients.
The market breadth was mixed on Wednesday, with decliners outpacing gainers in the S&P 500. Nucor fell 11% as materials stocks tumbled.