Wall Street recovers much of its big loss from a day before

NEW YORK

U.S. stocks rose on Wednesday to recover much of their sharp losses from a day before, triggered by worries that high interest rates might stick around for months longer than hoped.

The S&P 500 climbed 47.45 points (1%) to 5,000.62 and clawed back more than twothirds of its loss from Tuesday. A hotter-thanexpected report on inflation forced investors to delay forecasts for when the Federal Reserve might begin cutting interest rates, potentially into the summer. Expectations for such cuts are a big reason stocks rallied to records recently.

The Dow Jones Industrial Average gained 151.52 (0.4%) to 38,424.27 a day after after dropping 524 points for its worst loss in nearly 11 months. The Nasdaq jumped 203.55 (1.3%) to 15,859.15.

The smallest stocks, which took the hardest hit from worries about higher interest rates on Tuesday, bounced back more than the rest of the market.

The Russell 2000 leaped 47.93 (2.4%) to 2,012.10.

Helping to keep things steadier on Wall Street was a calmer bond market.

Critics have been arguing that stock prices might have run too far, too fast in their rally since October. A pullback could be healthy if it take some of the “froth” out of the market, according to JJ Kinahan, CEO of IG North America.

Kinahan said he found it interesting that big recent winners such as Nvidia and other chipmakers finished Tuesday well off their lows for the day. That makes him think the day’s drop “was more about taking some profits than it was panic selling” by investors.

Nvidia, which has been riding a mania around artificial-intelligence technology, rose 2.5% Wednesday and was the single strongest force pushing up the S&P 500 index.