The major domestic equity indexes ran out of steam on Wednesday after an early surge, in a sign that investors remain shocked by the market’s recent retreat and wary more fallout is to come.
In an up-and-down session, the S&P 500 index faded at the close after trading higher for much of the afternoon, following two days of big moves, including its largest single-day percentage loss in more than six years on Monday.
While Wednesday’s trading lacked the wild swings of the prior two sessions, the Dow Jones industrial Average moved in a roughly 500-point range, more than three times the average daily swing over the past year.
The technology sector fell 1.4 percent, with Apple down 2.1 percent, while energy fell 1.7 percent as oil prices wilted. Gains in the industrial and financial sectors supported the market.
The S&P 500 had rebounded 1.7 percent on Tuesday, a day after its largest decline since August 2011.
Investors were weighing whether the sharp swings were the start of a deeper move down or just clearing the way before a resumption of the aging bull market, which would turn nine on March 9.
The market’s pullback came with concerns about rising bond yields and higher inflation, reinforced by last Friday’s January jobs report that prompted worries the Federal Reserve will raise benchmark interest rates at a faster pace than expected this year.
The Senate reached a two-year bipartisan budget deal worth around $300 billion to end the kind of squabbling over fiscal issues that has plagued Washington for years.
Benchmark Treasury yields rose after the Treasury Department sold new 10-year notes to soft demand along with the Senate budget deal that could possibly be adding to the pressure on stocks.
The CBOE Volatility Index, known as the VIX, fell 2.3 points to 27.73, but that was still more than twice levels generally seen in the past few months.
Wynn Resorts climbed 8.6 percent after casino mogul Steve Wynn resigned as the chief executive following sexual misconduct allegations.
Snapchat owner Snap soared 47.6 percent after it reported surging growth in users and revenue in its latest quarter.
Approximately 9.1 billion shares changed hands in the major domestic equity exchanges, as compared to the 8 billion share daily average over the past 20 trading sessions.