December 2, 2022

Stocks rebounded from today's lows, with the Dow Jones briefly turning positive

Stocks rebounded from today’s lows, with the Dow Jones briefly turning positive

US stocks were little changed on Wednesday as Wall Street tried to capitalize on the sharp gains it made in the past two sessions.

The Dow Jones Industrial Average was trading up 15 points, or 0.1%. Earlier in the day, the Dow was down 429.88 points, or more than 1%. The S&P 500 and Nasdaq Composite were also far from intraday lows, finally down 0.2% and 0.4%, respectively.

“It’s a moment to pause for the market to consider how long the rally has continued over the past couple of days,” said Young Yu Ma, chief investment analyst at BMO Wealth Management. “The market is evaluating that it will take a lot for the Fed to make a complacency. Yes, number of tremors It was very welcome, no doubt about that. But this is actually the tip of the iceberg in terms of what the Fed needs to take a softer stance.”

“There is some truth creeping into the market and that enthusiasm for quite a few has started to fade,” he added.

Stocks saw a massive rally at the start of the month, with the S&P 500 posting its biggest gain in two days since 2020, as prices fell from multi-year highs. On Wednesday, though, Rates rose sharplywith the 10-year Treasury yield rising 15 basis points to 3.771% after briefly dropping below 3.6% in the previous session.

In its latest report, the ADP said private payrolls increased by 208,000, topping Dow Jones estimates. Traders are looking forward to Friday’s non-farm payrolls report. On Wednesday, the ISM services index for September was also released Shows strong growth for the month of September.

Some market participants questioned whether these signs might mean that markets have finally settled on the bottom after sharp declines in the previous quarter.

“The third-quarter earnings reports are not too far off, and the market psychology is certainly that the second-quarter earnings season helped stabilize the markets,” Ma said. “There was a lot of pessimism in the market that was able to recover quite strongly a couple of months ago. There is now also hope that earnings season can stabilize the market and maybe come to the rescue again, the way it did last quarter.”