Stock indexes rise on optimism of recovery, shrink back

US stock indexes rose at the open on Wednesday as a pickup in business activity fueled hopes of a post-pandemic economic recovery, but marts later gave up some of their gains as investors remained cautious about brewing US-China tensions.

The Dow Jones industrial average rose 303.52 points, or 1.21 percent, at the open to 25,298.63. By noon, it had dropped to 25,226.56.

The S&P 500 opened higher by 23.88 points, or 0.80 percent, at 3,015.65, only to fall to 2,998.22 later.

The Nasdaq Composite gained 5.90 points, or 0.06 percent, to 9,346.12 at the opening bell, but later declined to 9,258.27.

Meanwhile, overseas, the euro retreated from near two-month highs and equity markets wavered even as the European Union unveiled a 750 billion euro ($823 billion) recovery fund that helped offset concerns about unrest in Hong Kong over Beijing’s proposed security laws.

US Treasury yields also retreated from gains on the European Commission’s proposed stimulus plan to bolster economies ravaged by the coronavirus pandemic, which boosted risk appetite and reduced demand for safe-haven bonds and gold.