Highlights
Stocks rebounded slightly on Wednesday in a corrective move after three straight days of declines. The Dow Jones industrial average rose 0.6 percent while the S&P 500 and the Nasdaq both firmed 0.5 percent. Bond yields retreated from multi-year highs, oil prices edged up, and the dollar was slightly weaker.
Less hawkish comments from New York Fed President John Williams reassured investors who are worried about a near-term rate hike. Williams said rising bond yields reflected the view that the economy is strong, not inflation worries, and said would wait and see if the economy is on the path to 2 percent inflation. Also, US ADP payrolls figures came in on the low side, which suggested the job market is sluggish.
On the negative side, oil prices rose again after more US strikes against Iran and counterstrikes from Iran. This suggested the war may heat up again, and that any diplomatic settlement remains remote.