Major US equity indices opened with modest gains on Thursday and tried to make a comeback after yesterday’s brutal selloff.
A combination of negative triggers – worries about a global economic slowdown, the Fed’s rate-hike path and disappointing corporate earnings, unsettled the market and prompted some aggressive selling pressure on Wednesday.
The blue-chip Dow Jones Industrial Average (DJIA) and the broader S&P 500 Index fell for the sixth consecutive session and wiped out all of their YTD gains. Meanwhile, tech-heavy Nasdaq Composite Index dropped into correction territory for the first time in two years, tumbling over 10% below its Aug. 29 all-time high.
With Nasdaq attempting a goodish rebound from its worst day since 2011, strong earnings reports from a raft of companies, including Microsoft and Ford, boosted sentiment and remained supportive of the positive mood during the early hour of trade on Thursday.
At the time of writing this report, the DJIA was up nearly 190-points to 24,770 and the broader S&P 500 Index climbed over 24-points to 2,680. Meanwhile, Nasdaq Composite Index outperformed the markets and rallied around 115-points to 7,223.
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