Dow closes more than 100 points higher as stocks recoup some losses following big sell-off: Live updates

Stocks rose Wednesday as Wall Street clawed back some of the steep losses suffered in the previous session.

The S&P 500 advanced 0.96% to finish at 5,000.62, while the Nasdaq Composite climbed 1.3% to settle at 15,859.15. The Dow Jones Industrial Average added 151.52 points, or 0.4%, closing at 38,424.27.

Lyft shares jumped 35% after the ride-hailing company posted better-than-expected earnings in the fourth quarter. Airbnb slipped 1.7% even as the company beat on revenue expectations in its latest quarter.

Shares of Nvidia nudged nearly 2.5% higher, sending the chipmaker’s market capitalization briefly above that of fellow “Magnificent 7” member Alphabet‘s. This follows Nvidia’s 2% slide on Tuesday after rising Treasury yields sunk technology stocks.

On Tuesday, the 30-stock Dow lost more than 1% for its worst day since March 2023. The S&P 500 and Nasdaq Composite also slumped more than 1%. A hotter-than-anticipated inflation reading early in the morning incited the sell-off as traders fretted that the Federal Reserve may not cut interest rates as early as they had hoped.

“The market was overbought from a variety of readings, but is yet to be now in the oversold camp. There is still some vulnerability in the near term for some corrective action, in my opinion, but I certainly don’t think that we are headed for a decline in excess of 10%. I think it’s a more corrective pullback that is needed before we can continue our upward climb,” said Sam Stovall, chief investment strategist at CFRA, in an interview with CNBC.

January’s CPI report likely pushes the likelihood of a Fed rate cut to the second half of 2024, versus investors’ initial expectations of rate cuts as early as March.