The Bank of England indicated it would buy government bonds in order to stabilize the pound, so the US stocks closed higher on Wednesday.
Markets have been plunging in the past week due to increased bond yields, as central bankers around the world have increased interest rates.
The shares of Microsoft Corporation, Inc. AMZN and Amazon.com traded higher on Wednesday. Apple Inc. AAPL shares fell by 1.3% after the company reportedly plans to back off on the production of its new iPhones this year.
The Nasdaq 100 went up 1.97% to close at 11,493. The S&P 500 gained 1.97% on Wednesday, while the S&P 500 gained 83. The Dow Jones jumped around 549 points to settle at 29,683. Energy stocks recorded the biggest surge on Wednesday, with the S&P 500 closing on a strong note.
The CBOE Volatility Index, commonly known as VIX, is a measure of the equity market's expectation of volatility based on S&P 500 index call and put options.