The Dow Jones Industrial Average got over the hump Wednesday, closing up more than 600 points for an almost 4% gain as trading seemed to stabilize a bit after a week of chaos.
Foreign markets, including those in Asia and Europe, ended the day down but with smaller dips than earlier in the week. Shanghai’s benchmark index had another yo-yo day of trading but ended 1.3% down. European markets, including those in Paris, Frankfurt, and the FTSE 100 in London closed down by more than 1%.
But American markets experienced a big high Wednesday. The Standard & Poor 500 was up 3.95, closing at 1,940.51, while the Nasdaq closed 4.2% higher at 4,697.54. The Dow, meanwhile, closed at 16,285.64 for a 3.97% gain, marking a triple play of good news following six straight days of losses in the three markets.
In fact, the day was so good for the Dow that it recorded its third-highest single day gain ever, and the largest since 2011.
But don’t get too comfortable. Analysts are predicting some rough waters ahead as uncertainty still swirls around China’s economy, the world’s second-largest, and the Federal Reserve’s looming September decision on interest rates.
“Until we get September out of the way, I think markets will continue to be choppy,” Michael Hewson, CMC Market’s chief market analyst, told the BBC.
And while Wednesday was an altogether excellent day of trading for the American markets, those indexes remain down for the year and could see more wild fluctuations depending on how China’s stocks behave. Shanghai was down Wednesday despite a surprise move by the People’s Bank of China to cut interest rates for the fifth time this year.
One bright sign for investors: New York Fed President Bill Dudley called the case for raising interest rates “less compelling” in a Wednesday briefing.