After a rough start to the week, U.S. stocks showed signs of recovery on Wednesday. Nasdaq Composite and S&P 500 closed in the green, while the Dow Jones Industrial Average extended its losses.
Tech-heavy Nasdaq performed even better, rising by 1.22% or 212.35 points for a 17,648.45 close. However, it was insufficient to erase losses from the previous two days.
S&P 500 jumped by 0.49% or 27.23 points to close at 5,599.30. The benchmark index still remains close to 3% down since the beginning of the week.
The blue-chip Dow Jones Industrial Average closed at 41,350.93 points after a slip of 0.20% or 82.55 points. It has now lost 3.4% since Monday morning.
Tech stocks have been leading the rebound, with Nvidia jumping by 6.4% and Tesla gaining 7.6%. Microsoft, Amazon, Alphabet, and Meta also recorded gains with Apple being the only member of Magnificient seven to end the day in the red.
After worries about the state of the U.S. economy prompted a broad sell-off in the past couple of days, investors received some encouraging news on Wednesday. U.S. President Donald Trump made tweaks to his tariff policy changes and granted an exemption for U.S. automakers. Additionally, the Labor Department’s report showed that the inflation in February eased, coming below the expectations of economists.