U.S. stocks closed sharply higher on Wednesday, partly recovering from the worst start to September in 13 years, as investors eyed calmer global markets, domestic data, and oil prices. ( Tweet This )
The major averages rallied more than 1.5 percent in the close to end near session highs, with the Nasdaq composite outperforming with gains of 2.46 percent to pull out of correction territory.
The S&P 500 also closed higher out of correction territory, while the Dow Jones industrial average remained in correction. The blue chip index ended three straight days of losses with a gain of 293 points. Apple surged 4.29 percent and Microsoft leaped 3.68 percent to lead nearly all blue chips higher, while information technology led all S&P sectors higher.
The iPhone maker's stock attempted gains for 2015 but remained in correction territory.
Energy turned mildly higher as crude oil recovered to settle up 1.85 percent at $46.25 a barrel. Earlier, crude fell as much as 4 percent to below $44 a barrel after the U.S. Energy Information Administration's weekly report showed oil inventories rose.
"I think that the stock market has been trading in concert with oil prices," said Kim Forrest, senior equity analyst at Fort Pitt Capital.
After a recent rally, crude settled 7.7 percent lower on Tuesday.
Earlier, the major averages held gains of about 1 percent or more after the Federal Reserve's latest Beige Book said economic activity continued to expand.
"I'm a little disappointed by the Beige Book. I was looking for more robust signs of growth," said Tara Sinclair, chief economist at Indeed. "It does make me wonder whether there's still room for the economy to grow."
The larger factor for investors on the timing of a rate hike remains Friday's nonfarm payrolls report.
"I think more or less what we see is markets digesting last week's rally. Problem is, we're in the lower part of the range," said Adam Sarhan, CEO of Sarhan Capital. The Beige Book is just "one piece of the puzzle" on determining the timing of a rate hike.
The U.S. dollar traded higher against major world currencies, with the euro near $1.12 and the yen near 120 yen against the greenback.