The stock market has reversed earlier losses Wednesday.
The Dow Jones Industrial Average is up 0.4%, while the S&P 500 has gained 0.2% and the Nasdaq Composite is up 0.3%. All three indexes were in the red earlier in the day.
Stocks might be taking their cues from the bond market. The two-year Treasury yield, a barometer for expectations about the federal funds rate, initially jumped to almost 4.2% because economic data showed a growing economy and jobs market, both of which could bring about a bit more inflation and a higher fed funds rate. But then the yield aggressively dropped from its intraday peak, now at just over 4.1%.
Maybe the Fed will cut rates again in November to keep the economic expansion happening.
Also, the Nasdaq is getting some help from Alphabet, which is seeing its stock rise more than 6% after beating earnings expectations. The results showed that artificial intelligence is driving growth of search, advertising and cloud sales.
