U.S. stocks reverse some gains after two-day winning streak, Dow falls 200 points

Stock futures fall after two days of sharp rallies

U.S. stocks fell on Wednesday, with Wall Street expected to give back some of the sharp gains made over the past two sessions.

The Dow Jones Industrial Average fell 206 points, or 0.7%. The S&P 500 and Nasdaq Composite fell 0.9% and 1.2%, respectively.

U.S. Treasury yields rebounded on Wednesday, weighing on stocks. The 10-year rate rose 10 basis points to 3.713% after briefly dipping below 3.6% in the previous session.

Payroll service ADP released its jobs report, which showed 208,000 jobs were added in September, better than expected by Dow Jones estimates. Traders are still looking ahead to Friday’s nonfarm payrolls report.

The Dow rose about 825 points, or 2.8%, on Tuesday. The S&P 500 rose nearly 3.1% and the Nasdaq Composite gained 3.3%. Those gains led to the S&P 500 posting its strongest two-day gain of 2020 as bond yields fell.

Meanwhile, recent weak job opening data has some investors wondering whether the Fed will slow the pace of interest rate hikes.

Market participants wondered whether these signs meant the market finally bottomed in prices after a sharp drop in the previous quarter.

“I don’t think you need to worry about a recession until the second half of ’23,” Stifel chief equity strategist Barry Bannister said Tuesday on CNBC’s “Closing Bell: Overtime.” “So, going into early next year, there is still room for a rebound.”

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