US Stocks Snap Losing Streak but Oil and Bonds Decline

US stocks back in track after six days of turmoil.

Traders in the US stock exchange. (Photo: Reuters)

Wall Street rebounded sharply on Wednesday after six straight days of large declines caused by China worries, while long-dated bond prices fell after a top Federal Reserve official scaled back expectations of a September rate increase.

The dollar rebounded for a second straight session as firmer US stocks and a recouping of some losses in European shares reduced the need to buy safe-haven currencies such as the yen.

Oil prices fell, however, after a drawdown in US crude stockpiles was offset by a larger-than-expected build in gasoline.

Influential New York Fed President William Dudley said earlier in the day that a rate increase next month seems less appropriate given the threat posed to the US economy by recent global market turmoil.

Stocks were choppy for much of the day even though investors viewed the hint of caution about rate hikes as reassuring, but stocks gained momentum in the late afternoon, led by a big increase in the S&P 500 technology sector.