Stocks end modestly higher after choppy day

Major stock indexes weathered a bout of choppy trading on Wall Street Wednesday and closed higher for the third day in a row.

The S&P 500 rose 0.3%, with 62% of the stocks within the benchmark index closing higher. The muted trading followed a strong start to the week that included the index’s biggest gain since March. With the latest gain, the S&P 500 has now recovered all of its losses from its two-week skid heading into this week.

The Dow Jones Industrial Average bounced back from an early drop to eke out a 0.1% gain, while the Nasdaq composite rose 0.6%.

Markets had slipped the previous two weeks over several concerns, including rising inflation, the newest coronavirus variant and how both issues could impact economic growth. Stocks steadied this week following comments from Dr. Anthony Fauci, the White House’s chief medical adviser, who on Monday said early indications suggested that the omicron variant may be less dangerous than delta.

“The generally more confident tone is a function of omicron news,” said Liz Ann Sonders, chief investment strategist at Charles Schwab. “Regardless of what’s happening, it’s still amazing to see all the flip-flopping happening at the sector level.”

The choppiness in the market will likely persist through December, she said.

The S&P 500 rose 14.46 points to 4,701.21, and is now up 25.2% for the year. The Dow gained 35.32 points to 35,754.75.