US stocks partially recover after steep losses

(MENAFN- AFP) US stocks headed about one percent higher in early trade Wednesday, only partly erasing Tuesday's steep losses as worries about China's economy persisted.

About 30 minutes into trade, the Dow Jones Industrial Average was up 179.59 points (0.99 percent) at 16,237.94.

The broader S&P 500 gained 17.80 (1.12 percent) at 1,931.65, and the Nasdaq Composite added 46.44 (1.00 percent) at 4,682.54.

Volatility remained the theme of the day in global markets, with economists saying China's downturn will hit global economic growth, and with the Federal Reserve's path to an interest rate hike still clouded.

Market players remain concerned about "the possibility of the Federal Reserve making a policy mistake in an environment that is riddled with angst about slowing economic growth, falling earnings estimates, and rising interest rates," said Patrick O'Hare of Briefing.com.

The 30 Dow blue chips were all higher, led by banks, which were heavily sold in Tuesday's rout that saw the overall market down nearly three percent.

JPMorgan Chase gained 1.6 percent, and Goldman Sachs 1.1 percent. Wells Fargo, not included in the Dow, surged 1.9 percent and Bank of America 1.6 percent.

In tech stocks, Apple pushed up 1.9 percent, Comcast 1.7 percent and chip-maker Intel, 1.6 percent.

Bond prices fell. The yield on the 10-year US Treasury rose to 2.19 percent from 2.17 percent Tuesday while the 30-year pushed to 2.95 percent from 2.93 percent. Bond prices and yields move inversely.

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