U.S. Stocks Rebound After Huge Loss

U.S. stocks traded higher on Wednesday morning after all major indexes plunged more than 4 percent in the previous session.

U.S. Treasury Secretary Timothy Geithner announced a comprehensive Financial Stability Plan Tuesday, but investors found it not specific enough and remained skeptical on key questions like how to price the bad bank assets and how to get bank start lending. Investors also shrugged off the passage of a 838-billion-U.S.-dollar stimulus package by the U.S. Senate.

Dow Jones lost nearly 382 points and Standard & Poor's 500 index dropped 4.9 percent.

The market seems to recover some losses as investors take bargains. Financial shares, which were the hardest hit on Tuesday, rebound modestly on Wednesday. Bank of America Corp. rose 8.45 percent to 6.03 dollars a share. Morgan Stanley added 8.85 percent to 22.63 dollars a share.

But gloomy economic data and corporate news are restraining the gaining.

The U.S. Commerce Department reported that the U.S. trade deficit fell to the lowest level in nearly six years in December on a sharp drop in imports. The report also said the trade deficit fell by 3.3 percent in 2008.

Swiss bank Credit Suisse Group posted a net loss of 5.61 billion dollars in the fourth-quarter, much worse than analysts expected.

The Dow Jones rose 70.49, or 0.89 percent, to 7,959.37. Broader indexes also moved higher. The Standard & Poor's 500 index climbed 8.26, or 1.00 percent, to 835.42; and the Nasdaq composite index edged up 10.92, or 0.72 percent, to 1,535.65.