Dow ends wild day with gain of almost 300

NEW YORK -- Stocks pulled off a stunning comeback Wednesday, surging higher in late trading and wiping out what looked to be another precipitous decline. The Dow Jones industrials, down more than 323 points in earlier trading, ended the day with an advance of just under 300 points.

A day after the Dow Jones industrial average mounted a comeback from a 464-point drop, the blue chip gauge plunged almost 264 points at the open of trading and was off as much as 323 points. It closed up 298.98 points, or 2.5%, at 12,270.17.

The Standard & Poor's 500 index rose 28.10, or 2.1%, to 1338.60 and the Nasdaq composite index rose 24.14, or 1.1%, to 2316.41.

Investors are still debating whether the surprise three-quarter point interest rate cut from the Federal Reserve on Tuesday was a sign that the economy is in worst shape than people thought — or whether the shock treatment to boost the economy will continue to provide stability in global financial markets.

"With Apple being the best of breed and having all the right stuff, if they are not seeing demand, that means investors are taking out the best of the best," says Todd Clark, director of listed trading at Nollenberger Capital Partners .

The fact that the European Central Bank did not lower interest rates overnight in the wake of the Fed's rate cut Tuesday also was viewed negatively by investors who were looking for a coordinated rate-cut plan.