U.S. stocks rebounded, after the Standard & Poor?s 500 Index posted one of its steepest drops this year, amid a respite in a global equities selloff.
The S&P 500 Index rose 1.1 percent to 1,935.29 at 10:08 a.m. in New York, after falling 3.8 percent over the previous two sessions. The Dow Jones Industrial Average added 190.80 points, or 1.2 percent, to 16,249.15. The Nasdaq Composite Index gained 1.3 percent.
?China?s going to be closed the next few days and that means there won?t be this negative lead-in to markets in the morning so that will be a nice reprieve,? said Stephen Carl, principal and head equity trader at Williams Capital Group LP. ?The date for a potential rate raise is certainly going back and forth and with the recent volatility in the market and situation overseas, people don?t have much conviction on when it will be.?
U.S. data today showed factory orders in July rose 0.4 percent, less than the 0.9 percent growth forecast by economists surveyed by Bloomberg. June orders grew 2.2 percent, revised up from a previously reported 1.8 percent.
The benchmark equity gauge?s 3 percent decline on Tuesday — its third-biggest of 2015 — marked a sour start to what has historically been the worst month of the year. The S&P 500 falls 1.1 percent on average in September, according to data compiled by Bloomberg going back to 1927.
Another troubling sign is that futures on Chicago Board Options Exchange Volatility Index have climbed, showing traders predict turbulent markets will endure. The gauge known as the VIX fell 6.5 percent Wednesday to 29.37, after a record monthly jump in August,up 135 percent.
The S&P 500 slumped 6.3 percent in August as China?s currency devaluation spurred concern over global growth, erasing more than $5.7 trillion in equity market values worldwide, while volatility surged the most on record. The equity index entered a correction last week, only to then rally more than 6 percent over two days. It closed Tuesday 10 percent below its all-time high set in May.