DFY:CC - Stocks Reverse Two-Day Slide

U.S. stocks rallied Wednesday, clawing back losses from earlier in the week, as traders cheered better-than-expected economic data that slowed down the idea that a recession is inevitable.

The Dow Jones Industrials popped 416.33 points, or 1.3%, to 32,812.50

The S&P 500 hiked 63.98 points or 1.6%, to 4,155.17, hitting its highest level since June and wiping out losses from earlier in the week.

The NASDAQ Composite surged 319.40 points, or 2.6%, to 12,668.16.

Comments from St. Louis Federal Reserve President James Bullard also boosted sentiment. He told reporters Wednesday morning that he doesn't think the U.S. is currently in a recession, and that rate hikes to tame high inflation will continue.

Traders shook off anxiety that House Speaker Nancy Pelosi's visit to Taiwan could further strain already tense U.S.-China relations. China had spent weeks warning her not to make the trip.

Markets fell further after three Federal Reserve presidents hinted that further rate hikes would be necessary to combat high inflation.

A surprise rebound in July services PMI helped investors shake off worries that the U.S. has already fallen into a recession, sending traders back to beaten-down tech stocks. The index released Wednesday ended three months of declines. Data on durable goods orders and manufacturing in June were also better than expected.

Treasury prices jumped Wednesday, lowering yields to 2.71%, from Tuesday's 2.75%. Treasury prices and yields move in opposite directions.

Oil prices sank $3.62 to $90.80 U.S. a barrel.

Gold prices floundered $7.60 to $1,782.10 U.S. an ounce.