The Dow Jones industrial average closed higher for the first time in six sessions on Wednesday, recovering from sharp losses seen earlier in the day, as Boeing soared on strong earnings.
Boeing rose 4.2 percent after reporting quarterly results that easily beat analyst expectations. The stock’s rise helped the Dow bounce back from a 201.05-point deficit and snap a five-day losing streak. The Dow closed at 24,083.83, up 59.70 points.
Stocks fell sharply earlier in the day as interest rates rose to levels not seen in years.
The benchmark 10-year Treasury yield traded at 3.03 percent after breaking above 3 percent for the first time since 2014 on Tuesday. Investors are worried rising borrowing costs may slow the economy and hurt companies’ ability to buy back their own stock.
“For 10 years, rates were kept artificially low to encourage risk taking,” said Jack Ablin, founding partner of Cresset Wealth. “Once we get to more normal levels, that’s going to become a challenge for equities as an asset class.”
Financial markets around the globe fell as yields rose, with European and Asian indexes closing in the red Wednesday.
U.S. equities fell sharply in the previous session, with the Dow dropping more than 400 points and the S&P 500 and Nasdaq both declining more than 1 percent.
The recent market volatility is taking place despite a string of strong corporate earnings. Of the S&P 500 companies that have reported thus far, 81 percent have topped analyst expectations, according to Thomson Reuters I/B/E/S.
On Tuesday, Caterpillar posted earnings and revenue that beat expectations, but the shares fell after the company’s CFO said their first-quarter results may have been the “high watermark” for the year. Those remarks helped push the market lower in the previous session.
Twitter also reported stronger-than-forecast earnings on Wednesday, but the stock fell 2.4 percent. Comcast, NBCUniversal’s parent company, also released better-than-expected earnings Wednesday.
“Earnings have been strong, but right now the market has a high bar for earnings with the tax cut in place,” said Jeff Zipper, managing director of investments at U.S. Bank Wealth Management. “The market also appears to be looking for any bad news” to sell.
Correction: This story has been updated to reflect Jeff Zipper’s correct last name.