Wall Street rebounds sharply on Wednesday
- CBOE Volatility Index drops more than 8% on Wednesday.
- Risk-sensitive technology shares capitalize on upbeat market mood.
- Upbeat Chinese data and easing fears of no-deal Brexit boost sentiment.
Major equity indexes in the United States started the day in the positive territory on Wednesday supported by recovering market sentiment. As of writing, the Dow Jones Industrial Average was up 0.8% on the day while the S&P 500 and the Nasdaq Composite were adding 0.93% and 1.22%, respectively.
Earlier today, the data from China showed that the business activity in the service sector at a more robust pace than expected to ease concerns over a slowdown in the world's second-biggest economy. Furthermore, rising hopes of British lawmakers not allowing the UK to crash out of the EU without a deal allowed risk-on flows continue to dominate markets today. Reflecting the upbeat mood, the CBOE Volatility Index, Wall Street's fear gauge, is down around 9% on the day.
Among the 11-major S&P 500 sectors, the risk-sensitive Technology Index is up 1.5% on the day to lead the rally followed by the Energy Index and the Industrials Index, which were both rising around 1.3% at the time of press.
Author
Eren Sengezer
FXStreet
As an economist at heart, Eren Sengezer specializes in the assessment of the short-term and long-term impacts of macroeconomic data, central bank policies and political developments on financial assets.
