Key Events

Wall Street is buying the stock market’s dip, for now.

The Nasdaq Composite rose 0.4% after falling sharply earlier in the morning. The tech-heavy index was for much of the morning in danger of closing in correction territory.

If the Nasdaq Composite closes higher, it would mark its largest reversal from an intraday low to positive territory since Oct. 13, 2022, according to Dow Jones Market Data. The index was down 2.1% at its low today.

The S&P 500 was still down 0.4%, but well off its lows of the day. The Dow was down 331 points, or 0.8%, after trading down more than 800 points.

The market’s turnaround came after a key level for the S&P 500 held: The index traded as low as 5732.59 but did not cross its 200-day moving average of 5725.

The CBOE Volatility Index was up 3.6% to 23.55.

“The market is seeing a large rebound off the lows with no clear reason why,” writes Mizuho’s Daniel O’Regan. “However, some groups had reached incredibly oversold near-term levels and many were calling for a dead-cat bounce. There has been some violent de-risking across risk assets the last ~2 weeks and sentiment had shifted overly negative. However, most agree we are not out of the woods.”

O’Regan points out that the Nasdaq 100 also tested and held its 200-day moving average.

“The last time it tested that level was in August,” he wrote.