The Dow Jones industrial average, down more 78 at one point and trading below 5,400 for the first time since early February, surged into positive territory by mid-afternoon. The blue-chip gauge ended the day 53.11 higher at 5,474.06.
Advancers led decliners by 1,213 to 1,142 on the New York Stock Exchange. NYSE volume totaled 493.27 million shares vs. 406.72 million yesterday.
Broad-market indexes were mixed. The NYSE composite rose 2.65 to 345.98. The S&P 500 list rose 6.52 to 644.78. The Nasdaq composite index fell 1.77 to 1,180.90.
At the American Stock Exchange, the market value index fell 3.06 to 584.64.
The market rebounded with bonds after today's auction of new 10-year Treasury notes met with surprisingly strong demand.
Tuesday's auction of 3-year notes drew a weak response as investors grew skeptical about whether there was enough demand for this week's flood of $46 billion in new U.S. bonds - a record for the Treasury's quarterly refunding.
But the high yield on the 10-year
Treasury bond proved attractive enough to draw buyers into the market.
After the auction, the yield on the 30-Year Treasury bond - a benchmark used to set the rates charged on many types of loans - fell below 7 percent, cheering stock investors.