U.S. stocks advanced, amid their steepest losing streak in four years, as investors made another go at finding a floor after yesterday’s early rally evaporated.
New York Fed Bank President William Dudley said today that the case for raising interest rates in September is less compelling because of international financial and market developments.
The Standard & Poor’s 500 Index climbed 1.6 percent to 1,898.02 at 10:59 a.m. in New York, trimming an earlier 2.5 percent rise. The Dow Jones Industrial Average added 256.62 points, or 1.6 percent, to 15,923.06. The Nasdaq Composite Index gained 1.6 percent.
“This type of short-term rally shouldn’t be much surprise given recent weakness,” said Chad Morganlander, a money manager at Stifel, Nicolaus & Co. in Florham Park, New Jersey, which oversees about $170 billion. “But nonetheless, investors are resetting their global growth expectations, and that’s having a deleterious effect in the longer term. The acceleration of the situation has investors on edge.”
A rebound that took the Dow up more than 440 points on Tuesday disappeared in the final hour of trading, with investors giving in to trepidation over what would happen overnight in China. The S&P 500 went from up 2.9 percent to down 1.4 percent. The Shanghai Composite Index closed down 1.3 percent, erasing an advance of as much as 4.3 percent.
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