US stocks ended higher in a choppy trading session as traders focused on the latest developments in talks between Greece and its international lenders, and the commencement of the US corporate earnings season.
The Dow Jones Industrial Average, off more than 200 points at intraday lows, ended 93.4 points or 0.5% higher at 17,776 points. This was the blue chip index’s biggest intraday rebound in more than four years.
The S&P 500 Index also recovered from a 1% decline in morning trading to close 12 points or 0.6% higher at 2081.34 points with more than eight of its ten key sectors ending higher.
The technology heavy Nasdaq also recovered from sharp early morning declines to end 5 points or 0.1% higher at 4,997.46 points.
“We broke the 200 day moving average … and around that time the market began to stabilize,” Robert Pavlik chief market strategist at Boston Private Wealth, told CNBC.
The stocks had turned lower immediately after the opening bell on continued concerns over China’s economy and weakness in its stock market. The concerns were, however, offset by the resumption in Greece’s bailout talks.
“Investors need to get use to a shock like Greece, but there are bigger issues that investors should be concerned about,” Bruce McCain, chief investment strategist at Key Private Bank, told Market Watch, referring to precipitous falls in China’s stock market.
“When fundamentals are shaky and valuations are stretched, stock markets are vulnerable to shocks and usually it’s unexpected ones that trigger large selloffs,” McCain said.
Euro Zone policymakers held an emergency meeting and slated another for Sunday to approve more bailout cash for Greece if the lending institution were satisfied by the country’s application and proposed reforms.
According to German Chancellor, Angel Merkel, Greece was expected to make a formal loan application on Wednesday.
The Chancellor added that she was also expecting detail by the cash strapped country on how it would cooperate to make its economy competitive once again in order to seek approval from German lawmakers.
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