Stocks recover after early skid on trade

Stocks overcame a big loss on Wall Street Wednesday, though the market’s recovery left plenty of signs ofworry among investors that the fallout from the trade war between the U.S. and China will spread.

A late-afternoon rally lifted most of the major stock indexes out of the red, reversing most of the early slide that briefly pulled the Dow Jones Industrial Average down more than 580 points.

Technology and consumer staples stocks powered much of the gains, offsetting losses in banks, energy and elsewhere.

Fresh fears that the escalating trade war between the U.S. and China may derail global economic growth gripped the market early Wednesday. Investors reacted as they have in recent days: selling stocks and shifting money into bonds, gold and other safe-haven holdings.

Bond yields sank around the world, something that happens when investors see a weaker economy and lowinflation on the way. Gold prices jumped to the highest price in more than six years.

But the selling began to lose momentum by midafternoon.

“(Investors) took the opportunity to buy the dip,” said Lindsey Bell, investment strategist with CFRA Research. “Not saying that we’re out of the woods yet.”

The S&P 500 index eked out a gain of 2.21 points, or 0.1 percent, to 2,883.98. The index had been down 2 percent during the heaviest bout of selling.

The Dow dropped 22.45 points, or 0.1 percent, to 26,007.07. It had been down as much as 589 points.

The Nasdaq led the market’s upward swing, climbing 29.56 points, or 0.4 percent, to 7,862.83. The Russell 2000 index of smaller companies lost 1.40 points, or 0.1 percent, to 1,500.69.

The market has been roiled the past couple of weeks by growing anxiety as the U.S. and China clash over trade.

The dimming expectations for global growth also sent the price of crude oil sharply lower. Benchmark U.S. crude plunged 4.7 percent at $51.09 a barrel. That helped pull energy sector stocks lower. Occidental Petroleum gave up 2.5 percent.

Disney fell 4.9 percent after disappointing investors with a sharp third quarter profit plunge that fell far short of Wall Street forecasts. The entertainment company said underperformance fromits Foxmovie and TV studio helpedweigh downthe fiscal third quarter financial results. It bought Fox’s entertainment business in March for $71 billion.

Drugstore operator CVS Health rose 7.3 percent after swinging to a second quarter profit and handily beating Wall Street forecasts. The company attributed part of the gains to health insurer Aetna, which it bought for $69 billion in November.