JUAN CARLOS ARANCIBIA
4:15 PM ET
The stock market erased most losses Wednesday and closed near the best levels of the day as Wall Street spent a second straight day in recovery mode.
The Nasdaq composite wiped away a loss of 1.7% to close 0.4% higher. The S&P 500 climbed 0.1% after paring losses. Both indexes held above Monday's lows, an indication that selling is moderating after an intense sell-off last week and Monday.
The Dow Jones Industrial Average fell 0.1% but bounced after touching its 200-day moving average. Walt Disney (DIS) hampered the Dow all day. Disney closed 5% lower after the entertainment company's quarterly earnings missed expectations.
Small caps also lagged, with the Russell 2000 down nearly 0.1% at the closing bell. Utility and consumer discretionary small caps were the weakest.
Volume rose from Tuesday's totals, according to unconfirmed data.
While the stock market kept its cool, there was a sense of dread in the bond market amid spreading trade and currency tensions.
The 10-year Treasury yield extended its plunge and sank to the lowest level since October 2016. The 10-year note was quoted at 1.68% late Wednesday, down 6 basis points, but it had been as low as 1.59%. Investors now expect rate cuts at the next three Fed meetings.
Financials Lag Stock Market
Financials — a rate-sensitive asset class — were the weakest sector. The Financial Select Sector SPDR Fund (XLF) fell 1.2%, but shares found some support at the 200-day average. JPMorgan (JPM), the second largest holding in the fund, slid to a two-month low before paring losses.
Among winning stocks, SolarEdge (SEDG) soared to a record high in huge volume, gapping up from support at the 10-week moving average. The maker of solar components reported better-than-expected earnings and gave a strong outlook........MORE
We'll be back with IBD's after-hours equity futures.
Earlier at Investor's Business Daily:
Stock Market Stages Surprising Reversal; Dow Jones Lags On Disney
NANCY GONDO
3:08 PM ET
Dow Jones Storms Off Lows, But Disney Stock Plunges; JPMorgan Also Weighs
KEN SHREVE
1:34 PM E
