Rebound Day Turned Red and Earnings Helped Declines | Wall Street Today

Wednesday began with another rebound trading session, but after noon indexes began to pullback. For the day, the once positive market finished down, and each index continued lowering into correction territory.

The CBOE's Volatility Index (VIX), known as the fear gauge, traded 0.3% lower before climbing 1.95%. Earlier in the session, the indicator seesawed, down as much as 12% and almost breakeven, signaling trepidation among market participants.

According to MarketWatch, those fears were sparked by a substantial miss in July nonfarm payrolls. Fears subsided by midweek, according to the probability of a 50 basis point cut in interest rates. Most Treasury yields jumped intraday, with the 10-year up 6.8 basis points to 3.95% and the two-year rate 3.5 basis points higher at 4.02%.

Reuters reported that Bank of Japan Deputy Governor Shinichi Uchida's comments Wednesday that the central bank would not raise rates amid financial market instability pushed the yen lower and helped improve market sentiment, Reuters reported.The central bank's surprise rate hike on July 31 contributed to the global market crash Monday as the decision kicked off an unwinding of the so-called yen carry trade.