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.
The euro hit a one-year high against the dollar on Wednesday and the British pound rallied on bets that Europe's and Britain's central banks are preparing to scale back economic stimulus, while bank stocks led a rebound on Wall Street. The dollar index slid as Bank of England Governor Mark Carney said a debate on the need to raise interest rates is due "in the coming months," adding to a hawkish tone out of the European Central Bank on Tuesday.
A rally by financial stocks on Wednesday helps lift U.S. equity indexes with the S&P 500 poised for its best day in two months.