NEW YORK: US stocks bounced back Wednesday from the prior day's steep losses, lifted by Alcoa's surprise quarterly profit and easing bond yields in Spain and Italy.
The Dow Jones Industrial Average jumped 105.32 points (0.83 percent) to 12,821.25 in the first five minutes of trade.
"Bargain hunters are circling the Street, after five days of selling in US equities," said Karee Venema at Schaeffer's Investment Research.
Dow member Alcoa unofficially kicked off the earnings season after the market closed Tuesday, reporting a surprise profit of $94 million instead of the loss expected by analysts.
The broader S&P 500 gained 12.91 points (0.95 percent) to 1,371.50, while the tech-heavy Nasdaq climbed 25.87 (0.86 percent) to 3,017.09.
Analysts at Charles Schwab & Co. noted Wall Street support coming from Europe "Spanish and Italian bond yields, which have rallied as of late amid a flare up in sovereign debt concerns, are falling."
That trend was helped by comments from a European Central Bank member about the prospect of further bond-buying.
The rebound came after US stocks posted sharp losses Tuesday amid worries about upcoming earnings, slower growth and Spain's rising bond yields as investors fear the eurozone country will be unable to stabilize its finances.
The Dow plunged 213.66 points (1.65 percent), its fifth straight decline. The S&P 500 dropped 1.71 percent and the Nasdaq shed 1.83 percent.
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