Stocks stage afternoon rally; Gold plunges $104
The Dow ended 144 points higher, with gold taking a dive and government bond yields rising. The S&P 500 gained about 15 points, and the Nasdaq closed about 21 points up.
Richard Drew / AP
A late afternoon surge pushed stocks higher for the third day straight. The Dow Jones industrial average finished with a gain of 144 points Wednesday, but only after veering much of the day from gains to losses and back again.
Gold plunged $104 an ounce and government bond yields rose as investors became less fearful.
An encouraging rise in orders for cars, aircraft and other long-lasting goods in July helped ease worries that the U.S. was headed for another recession. The government said durable goods orders rose 4 percent, the biggest increase since March. Orders fell in June.
The stock market spent the day looking like a driver given bad directions. The Dow headed lower at the start of trading, turned up 115 points by 10 a.m., then pulled another U-turn and lost 48 points shortly after midday.
Near the end of the day, the Dow retraced its route and rose steadily in the last 90 minutes of trading to end up 143.95 points, or 1.3 percent, at 11,320.71. The Dow had surged 322 points the day before, the biggest gain since Aug. 11.
The Standard & Poor's 500 index rose 15.25 points, or 1.3 percent, to 1,177.60. The broad market measure has surged 4.8 percent for the week. If those gains last through Friday, it would be the first week the index has risen since July 22.
The Nasdaq rose 21.63, or 0.9 percent, to 2,467.69.
Large swings in the stock market have been commonplace this August. In the week after Standard & Poor's stripped the U.S. of its AAA rating Aug. 5, the Dow alternated between 400-point gains and losses four days in a row. That's never happened before.
The stock market often takes sudden turns in late August anyway, when fewer traders are at their desks, said Dan Greenhaus, chief global strategist at the brokerage BTIG. Lower trading volumes often make for a more volatile market.