It's only Wednesday and "Black Monday", when all three major Wall Street indices posted their worst percentage drops this year, now seems a vague memory with stocks staging their sharpest turnaround in seven months amidst persistent volatility. -China trade tensions could escalate and affect an already slowing global economy.
The Dow Jones Industrial Average rose 1.21 percent, the Nasdaq Composite added 1.39 percent the S&P 500 gained 1.30 percent.
The S&P 500 rose 54 points, or 1.9%, to 2,938.
The early carnage began as traders fled stocks in favor of so-called safe-haven assets such as gold and government bonds.
Bond prices fell. The yield on the 10-year Treasury rose to 1.75%.
Interest rates ticked higher, with the Treasury yield moving up to 1.72% from Wednesday's 1.691%. "And if you're not getting that, then stocks can stabilize, bond yields can move up a little bit".
Stocks in the US and other parts of the world advanced after China's central bank made a decision to fix the midpoint for onshore yuan trading at a rate just above 7 a dollar, slightly higher than analysts had been expecting and a sign the country is avoiding escalating tensions with the USA - for now.
"What really rattled people in the first part of the week was the drop in bond yields and what we saw over the course of yesterday and continue to see today is rising bond yields", Delwiche said. U.S. accuses China of currency manipulation. but what does that mean? The S&P 500 is down 3.5% for August.
The last time the stock market had a drop of 3% was on December 4, when investors were anxious that the Federal Reserve was raising interest rates too aggressively and would combine with trade concerns to create a recession.
The Russell 2000 is down 1.53 points, or 0.1%.
Lastly, just 20 stocks were lower. The price of oil slumped nearly 5%.
Benchmark crude oil rose $1.45 to settle at $52.54 a barrel.
Gold fell $9.60 to $1,497.70 per ounce, silver lost 26 cents to $16.90 per ounce and copper rose 4 cents to $2.60 per pound. Occidental Petroleum gave up 2.5%.
Low-risk, low-growth sectors like utilities lagged the market.
European and Asian indexes were mixed.
Strong data out of China helped calm Wall Street down. The entertainment company said underperformance from its Fox movie and TV studio helped weigh down the fiscal third quarter financial results.
Since Trump tweeted in March 2018 that "trade wars are good, and easy to win" after raising tariffs on steel and aluminum, the S&P 500 is up 7.2%, though that gain has almost halved in the last couple weeks as worries about the trade war have surged.