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Stocks rebound from wave of selling that erased 2018 gains

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The S&P 500 rose about half a percent in early trading, while gains in the technology-heavy Nasdaq were closer to 1 percent.
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Pressure on stock investors eased Wednesday as U.S. markets rebounded from two days of selling that wiped out gains for 2018.

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The S&P 500 rose about half a percent in early trading, while gains in the technology-heavy Nasdaq were closer to 1 percent. Despite the rebound, both benchmarks remained in negative territory for the year. Major markets in Europe were also higher after mixed trading in Asia.

Since peaking in late September, the markets have been rattled by various factors. The chief concerns have included slowing growth in China and Europe and the potential impact on corporate profits of rising interest rates and wages, and the continuing trade war between China and the United States. Investors are also looking ahead to next year, when the tax cuts that bolstered corporate profits this year will not have the same effect.

Investors had been particularly skittish about technology companies, amid reports that Apple is facing softer-than-expected demand for its new iPhones and as the steady stream of revelations about privacy lapses, security issues and mismanagement raised expectations that social networks would face regulations.

Among the technology stocks that have been hit hard in recent days, Amazon and Facebook rose more than 2 percent in early trading Wednesday. Apple, which had fallen more than 7 percent over the previous two days, was slightly higher, and Alphabet, Google’s parent company, gained about 1 percent.

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Energy stocks, among the worst performers Tuesday, also rose, as crude oil prices recovered from their lowest level this year.

The New York Times

Mohammed Hadi © 2018 The New York Times

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