By CCN: The Dow and broader U.S. stock market stabilized on Wednesday after dismal Chinese export data shined the spotlight on a sluggish global economy, prompting investors to snatch up domestic companies following a sharp two-day selloff.
Dow, S&P 500 Stabilize After Two-Day Decline
All of Wall Street’s benchmark indexes reported gains on Wednesday, stemming a brutal two-day drop in the first half the week. The Dow Jones Industrial Average climbed 113 points, or 0.4%, to reach 26,078.80. The blue-chip index opened lower on Wednesday, reflecting tepid pre-market conditions for Dow futures.
The broad S&P 500 Index of large-cap stocks climbed 0.3% to 2,892.11. Most of the 11 primary sectors tracked by the index traded in positive territory.
Meanwhile, the technology-focused Nasdaq Composite Index advanced 0.2% to 7,977.91.
The CBOE Volatility Index, commonly known as the VIX, showed signs of stabilizing after surging more than 50% on Monday and Tuesday. The so-called “fear index” settled at 18.94 after briefly trading above 21 earlier in the day. VIX trades on a scale of 1-100 with 20-25 representing the historic average.
China’s Trade Balance Weakens Unexpectedly
China’s export industry languished unexpectedly last month, offering the latest glimpse of a domestic economy trying to balance expansion with a renewed emphasis on services and consumption.
Data from the Administration of Customs showed a 2.7% decline in exports from a year earlier, partially reversing a 14.2% gain the month before. Imports climbed 4% annually, defying expectations of a similar drop.
Beijing’s dollar-denominated trade surplus plunged to $13.84 billion in April from $32.67 billion in March – a month-over-month decline of 57%. Analysts were expecting the surplus to strengthen to…