U.S. stocks rebound after Tuesday's tumble

Traders work on the floor of the New York Stock Exchange on Sept. 2, 2015.

REUTERS/Brendan McDermid

Last Updated Sep 2, 2015 4:05 PM EDT

NEW YORK - U.S. stocks recovered Wednesday after a sharp sell-off a day earlier. Still, investors remain on edge after a plunge in stocks Tuesday that was triggered by reports showing slowing growth in China.

The Dow Jones industrial average finished the day up 293 points, or 1.8 percent, to 16,351. The Standard & Poor's 500 index climbed 35 points, or 1.8 percent, to 1,949 and the Nasdaq composite gained 114 points, or 2.5 percent, to 4,750.

The gains followed a volatile Tuesday on Wall Street, where the Dow fell 470 points in a heavily-traded session.

China remains in focus across financial markets. The Shanghai composite index opened more than 4 percent lower, but turned positive by midday and eventually ended the day down only 0.2 percent. The volatile trading led some analysts to suspect Beijing was intervening to support share prices heading into a two-day holiday.

A private survey showed that U.S. businesses added jobs at a steady pace last month, with construction and manufacturing showing solid gains. The payroll processor ADP said businesses added 190,000 jobs last month, up from 177,000 in July, but below a six-month high set in June of 231,000.

The ADP report comes before Friday's August jobs report. Economists are forecasting that U.S. employers created 220,000 jobs in August, and that the unemployment rate fell to 5.2 percent.

It will be the last jobs report Federal Reserve policymakers have before their next policy meeting later this month. Some economists expect the Fed to raise interest rates for the first time in close to a decade after the meeting.

Tracking Chinese shares, Asian benchmarks swung between gains and losses. Hong Kong's Hang Seng sank 1.2 percent while South Korea's Kospi ended nearly. Japan's benchmark Nikkei 225 index slipped 0.4 percent.

Benchmark U.S. crude oil rose 5 cents to $45.45 a barrel in electronic trading on the New York Mercantile Exchange. Brent Crude, a benchmark for international oils used by many U.S. refineries, rose 50 cents to $50.10 a barrel in London.

Government bond prices fell, pushing up the yield on the benchmark 10-year Treasury note to 2.19 percent from 2.15 percent on Tuesday.

The euro was 0.3 percent lower at $1.1239, a day ahead of the European Central Bank's latest policy meeting. The dollar meanwhile rose 0.4 percent to 120.14 yen.