### Market Recap: Wall Street's Dramatic Intraday Reversal
**Stocks staged a significant comeback on Wednesday, with technology shares spearheading the recovery. The Nasdaq, in particular, bounced back robustly, pulling all major indices into positive territory by the session's close.**
After plummeting by as much as 1.4% in the morning, the Nasdaq rebounded dramatically, ending the day up 369.65 points or 2.2% at 17,395.53. The S&P 500 also saw a notable rise of 58.61 points or 1.1%, settling at 5,554.13. Meanwhile, the Dow Jones Industrial Average climbed 124.75 points or 0.3% to close at 40,861.71, having earlier touched its lowest level in nearly a month.
### Inflation Data Sparks Initial Selling
The early sell-off was triggered by the Labor Department's August consumer price inflation report. While the headline figure matched economist expectations with a 0.2% increase, core consumer prices—excluding food and energy—rose by a slightly higher-than-expected 0.3%. The uptick in core prices initially dampened hopes for a significant interest rate cut by the Federal Reserve next week.
### Market Sentiment Shifts
Despite the initial downturn, investor sentiment improved as the session progressed. The Federal Reserve is still anticipated to lower interest rates in the coming months. According to CME Group's FedWatch Tool, although the likelihood of a 50-basis-point rate cut next week has diminished, the market still expects rates to be at least one percentage point lower by year-end.
"Given the persistence of services inflation, the Fed is likely to opt for a 25-basis-point cut in the upcoming meeting," stated Jeffrey Roach, Chief Economist at LPL Financial. "They may reserve potential for more aggressive action later in the year should the job market deteriorate further."
### Sector Focus: Tech Leads the Way
Semiconductor stocks were pivotal in the market's turnaround, with the Philadelphia Semiconductor Index soaring 4.9%. Nvidia (NVDA) was a standout performer, surging 8.0%. The tech rebound also saw significant gains in networking, software, and computer hardware stocks, bolstering the tech-centric Nasdaq.
Other sectors also performed well, with steel and retail stocks showing strong upward movements. However, oil producer stocks lagged despite a slight rebound in crude oil prices.
### Global Markets Overview
Overseas markets painted a mixed picture. In the Asia-Pacific region, most stock markets closed lower, with Japan's Nikkei 225 Index falling 1.5% and China's Shanghai Composite Index slipping 0.8%. European markets were also mixed; Germany's DAX Index rose by 0.4%, while France's CAC 40 Index edged down 0.1% and the U.K.'s FTSE 100 Index dipped 0.2%.
### Bond and Treasury Market
Treasuries experienced fluctuations throughout the session but ended roughly flat. Consequently, the yield on the benchmark ten-year note, which inversely moves to its price, inched up by less than a basis point to 3.653%.
### Looking Ahead
Investors will be closely watching Thursday's trading session, which may be influenced by the Labor Department's upcoming reports on producer price inflation and weekly jobless claims.
