US stocks rebounded on Wednesday after a day of volatile trading on Tuesday, during which stocks flipped between gains and losses.
The S&P 500 inched up 0.64% or 17 points to 2,712, while the Dow Jones Industrial Average climbed 0.81% or 200 points to 25,113 in midday Wednesday trading.
The rally follows a market plunge on Monday and a volatility spike on Tuesday, during which the S&P and Dow erased all of their gains in 2018.
Global stocks pre-empted the US market's rebound, but returns were muted. Hong Kong’s Hang Seng index was down 0.89% or 272 points, Japan’s Nikkei was up slightly 0.16% or 35 points and the Europe Stoxx 600 was up almost 2%.
Scott Wren, senior global equity strategist, wrote in a Wednesday research note, that the wild fluctuations that global equity markets have experienced in the past few days may have led the stock markets to become detached from the fundamentals.
He urged investors to think more like traders who often use technical analysis to pick their entry and exit spots in the market in the short term.
‘When markets experience panic and massive volatility, price levels can dramatically differ from what the underlying fundamentals would suggest,’ wrote Wren. ‘Downside volatility represents opportunity. Be more nimble. Pick your spots and put sidelined funds to work.’