Stocks bounced back from Tuesday's slide with financials shares leading the advance. Yahoo Finance's Jared Blikre weighs in on all the recent central bank talk that put investors on edge, including concerns over high valuations.
Bank stock reflected a rise in treasury yields, following a Reuters report that the market had overinterpreted chief Mario Draghi's comments that the ECB was ready to start withdrawing the emergency stimulus for the economy. The sources clarified that Draghi intended to signal tolerance for a period of weaker inflation, not an imminent policy tightening. The financial index's 1.16 percent rise led the gainers, with Bank of America, JPMorgan and Citigroup all up more than 1 percent.
U.S. stocks traded higher on Wednesday after the European Central Bank tried to walk back remarks made by ECB President Mario Draghi a day earlier.