US Stocks recover after worst day since October

Following the largest day sell-off in months for the main indexes, US equities rose early on Thursday. The S&P 500 surged by roughly 0.8% at the start of trading, recovering from the benchmark index’s largest one-day drop since October.

Following the end of nine-day winning streaks, the teach-heavy Nasdaq Composite climbed 1.2% and the Dow Jones Industrial Average increased by 0.7%.

Some investors have warned that following a record-breaking rise in equities, which was fueled by anticipation that the Federal Reserve will switch to decreasing interest rates—possibly as soon as March—stocks were due for a downturn.

Despite opposition from central bank authorities, the market has remained steadfast in its belief, driving stock prices upward until the rally’s break on Wednesday.

Commentators offered several hypotheses as to why the market fell so sharply on Wednesday, including concerns about the US economy following bellwether FedEx’s (FDX) disappointing sales estimate, year-end profit-taking, and zero-day options trading.

Individual stock prices increased by more than 8% in the early hours of Thursday following the memory chipmaker’s higher-than-expected revenue estimate for the second quarter from Wall Street.

The prediction calls for a considerable price decline in the memory chip industry to be followed by a rebound by 2024.