Wall Street's main indexes inched higher on Wednesday as investors lapped up cheaper technology stocks in a choppy session that remained centered on tariff moves as China retaliated with more levies on U.S. goods.
Most megacap and growth stocks rose, with Apple (AAPL.O) and Nvidia (NVDA.O) adding nearly 2.5% each and Microsoft (MSFT.O) up 1.2%. The tech sector (.SPLRCT) was up 1.5%.
"The reflex to buy the dip is very strong and certainly the wipeout you've seen in tech stocks makes them cheap relative to where they were," said Chris Beauchamp, chief strategist at IG.
Despite the early gains, all three benchmarks were down more than 10% from the levels seen before the reciprocal U.S. tariff were announced last week.
China on Wednesday responded by imposing additional levies of 84% on all U.S. goods from April 10, up from the 34% previously announced.
As the tariff war escalated and hopes of concessions faded, investors rushed to exit stocks, industrial commodities and even government bonds.
The upcoming U.S. earnings season will offer more insights about the health of corporate America as investors fear a hit to economic growth.
"The longer this trade dispute goes on and the more it escalates with one side adding to what the other side is doing, it will continue to erode investor and consumer confidence," said Sam Stovall, chief investment strategist at CFRA Research.
At 09:52 a.m. the Dow Jones Industrial Average (.DJI) rose 94.72 points, or 0.25%, to 37,740.31, the S&P 500 (.SPX) gained 31.96 points, or 0.64%, to 5,014.73 and the Nasdaq Composite (.IXIC) gained 222.93 points, or 1.46%, to 15,490.84.
Healthcare stocks (.SPXHC) fell 1.5% as drugmakers slid after Trump reiterated plans for "major" tariffs on pharmaceutical imports. Eli Lilly (LLY.N) was down 3.7% and AbbVie (ABBV.N) 4.1%.
Oil majors Exxon Mobil (XOM.N) and Chevron (CVX.N) fell over 1.5% each, as crude prices plunged to more than four-year lows.
The CBOE Volatility index (.VIX) - seen as Wall Street's 'fear gauge', hovered near its highest since August last year at 51.66 points.
Meanwhile, the tariff-driven turmoil prompted investors to dump safe-haven U.S. Treasuries for a dash of cash, pushing yields higher.
The yield on the 10-year note was near its highest since late February, last at 4.356%. If gains sustain, it would mark the biggest weekly jump since 2001.
Minutes from the Fed's March policy meeting are due later in the day, while a consumer price inflation reading is set for Thursday, which could offer more clues on the inflation trajectory.
U.S.-listed shares of Chinese companies also shed a bulk of their premarket gains after China announced retaliatory tariffs. The iShares MSCI China ETF (MCHI.O) was last up 3.6%.
Delta Air Lines (DAL.N) gained 6.1% as the carrier beat first quarter profit estimates. The company though pulled its 2025 financial forecast and projected current-quarter profit below expectations.
Declining issues outnumbered advancers by a 1.63-to-1 ratio on the NYSE and by a 1.14-to-1 ratio on the Nasdaq.
The S&P 500 posted no new 52-week highs and 90 new lows while the Nasdaq Composite recorded three new highs and 391 new lows.
