WASHINGTON (dpa-AFX) - After rebounding from an initial sell-off but still ending the previous session notably lower, stocks have moved mostly higher during trading on Wednesday. The major averages have all moved to the upside, with the tech-heavy Nasdaq leading the way.
Currently, the major averages are off their highs of the session but still firmly positive. The Nasdaq is up 250.40 points or 1.1 percent at 22,767.09, the S&P 500 is up 43.53 points or 0.6 percent at 6,860.16 and the Dow is up 252.32 points or 0.5 percent at 48,753.59.
The strength on Wall Street comes as traders continued to pick up stocks at relatively reduced levels after the early sell-off on Tuesday dragged the major averages down to their lowest levels in three months.
Buying interest has also been generated in reaction to a pullback by the price of crude oil, which is retreating after reaching its highest levels since June.
The pullback by the price of crude oil comes after President Donald Trump announced he has ordered the U.S. Development Finance Corporation to provide political risk insurance and guarantees for the security of maritime trade in the Middle East.
Trump also said the U.S. Navy would begin escorting tankers through the Strait of Hormuz if necessary, promising the 'free flow of energy to the world.'
The president's plan has helped offset concerns about energy supply disruptions as a result of the ongoing conflict that erupted following U.S. and Israeli attacks against Iran.
On the U.S. economic front, payroll processor ADP released a report showing private sector employment in the U.S. increased by more than expected in the month of February.
ADP said private sector employment climbed by 63,000 jobs in February after rising by a downwardly revised 11,000 jobs in January.
Economists had expected private sector employment to grow by 48,000 jobs compared to the addition of 22,000 jobs originally reported for the previous month.
A separate report released by the Institute for Supply Management showed service sector activity in the U.S. unexpectedly grew at a faster pace in the month of February.
The ISM said its services PMI climbed to 56.1 in February from 53.8 in January, with a reading above 50 indicating growth. Economists had expected the index to edge down to 53.6.
With the unexpected increase, the services PMI reached its highest level since hitting 56.5 in July of 2022.
Sector News
Semiconductor stocks are turning in some of the market's best performances on the day, with the Philadelphia Semiconductor Index climbing by 1.6 percent after ending the previous session at its lowest closing level in almost a month.
Considerable strength is also visible among retail stocks, as reflected by the 1.4 percent gain being posted by the Dow Jones U.S. Retail Index.
Computer hardware, brokerage and networking are also seeing notable strength, while natural gas stocks have moved to the downside.
Other Markets
In overseas trading, stock markets across the Asia-Pacific region continued to move sharply lower on Wednesday. Japan's Nikkei 225 Index tumbled by 3.6 percent, while South Korea's Kospi saw a 12.1 percent nosedive.
Meanwhile, the major European markets have moved back to the upside on the day. While the German DAX Index is up by 1.7 percent, the French CAC 40 Index is up by 1.2 percent and the U.K.'s FTSE 100 Index is up by 0.9 percent.
In the bond market, treasuries are extending the downward move seen over the two previous sessions. Subsequently, the yield on the benchmark ten-year note, which moves opposite of its price, is up by 2.1 basis points at 4.077 percent.
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