U.S. stocks were trading solidly higher late Wednesday morning, continuing a recovery from a multiday bout of massive volatility, though investors remained in a period of adjustment to an economic environment marked by both rising bond yields and signs of inflation.
The Dow Jones Industrial Average fell more than 120 points in early action but soon regained its footing and was up 290 points, or 1.2%, at 25,207. On Tuesday, it jumped more than 2% in its biggest daily percentage gain in two years. However, that followed Monday’s drop, which was the blue-chip average’s largest percentage drop since August 2011 and its biggest-ever point decline.
The S&P 500 climbed 23 points, or 0.9%, to 2,718, with all 11 main sectors trading higher early Wednesday. The Nasdaq Composite advanced 39 points, or 0.6%, to 7,154.
At current levels, the Dow stands 5.3% below last month’s record high. The S&P is 5.3% below its own record, while the Nasdaq is 4.6% below its own all-time high.