And now stocks are rallying.
After opening slightly higher on Wednesday and then turning negative, stocks have bounced off their lows and moved to session highs.
In late morning trade on Wednesday, the Dow was up 91 points, the S&P 500 was up 9 points, and the Nasdaq was up 29 points.
Tuesday marked the third straight losing session for the stock market, and a negative close on Wednesday would mark the first time this year stocks see losses in four straight sessions.
Wednesday is a light day for the economic calender, but we did get new home sales that significantly beat expectations. New home sales rose 18% in August to an annualized pace of 504,000. This compared to expectations for an increase to an annualized rate of 430,000, with Wednesday’s report marking the largest beat relative to expectations since May 2010.
Also making headlines on Wednesday was a report from The Wall Street Journal that said China might push out the head of its central bank.
The SEC is also reportedly looking into certain activities in the ETF that tracks PIMCO’s signature Total Return Bond Fund, with the regulator examining whether returns inside the exchange-traded fund were artificially boosted.
Among the notable stock movers was Bed Bath & Beyond, up 6% after reporting better than expected earnings and revenue on Tuesday night.