Investing.com -- U.S. stocks staged a dramatic comeback, cutting a large chunk of their losses late in Wednesday's session after the Dow Jones Industrial Average fell more than 550 points in a massive sell-off triggered by the latest crash in oil prices.
On Wednesday, U.S. crude for February delivery fell more than 6% to an intraday low of $26.19, slipping to its lowest level since May, 2003. Crude prices have fallen precipitously this week following Iran's return to global markets after a group of Western Powers lifted longstanding economic sanctions against Tehran over the weekend. As a result, oil futures have tumbled more than 20% since the start of the new year in the face of mounting concerns related to excessive supply on global energy markets.
The Dow lost 249.28 or 1.56% to 15,766.74, while the NASDAQ Composite index ticked down 5.26 or 0.12% to 4,471.69 on a frenzied day of trading when both indices receded to their lowest levels since last summer's flash crash. The S&P 500 Composite index, meanwhile, fell 22.00 or 1.17% to 1,859.33, as stocks in nine of 10 sectors closed in the red. Stocks in the Energy and Utilities industries lagged, each falling more than 2% on the session. Stocks in the Health Care sector led.
At one point, the S&P 500 slid to its lowest level since February, 2014, as nearly 90% of the index traded in correction territory. Since the start of the new year, the S&P has lost approximately $2 trillion in market capitalization.
The top performer on the Dow was UnitedHealth Group Incorporated (N:UNH), which added 2.21 or 1.96% to 114.79. The nation's largest healthcare insurer topped the Dow for the second consecutive day after reporting a 30% increase in fourth quarter revenues on Tuesday. The worst performer was International Business Machines (N:IBM) (N:IBM), which tumbled 6.25 or 4.88% to 121.86, following an 8.5% decline in quarterly earnings, amid a strong dollar and sluggish IT spending.
The biggest gainer on the NASDAQ was Celgene Corporation (O:CELG), which jumped 4.50 or 4.37% to 107.49, after the company reported mixed forward guidance in spite of strong forecasts with its blockbuster lymphoma drug Revlimid. During fiscal year 2015, Celgene (O:CELG) expects Revlimid sales to surge by more than 15%. The worst performer was Micron Technology Inc (O:MU), which lost 0.75 or 6.94% to 10.05. Micron, which fell to a 52-week low on Wednesday, is down by more than 60% over the last year due in part to weak demand and falling pricing trends in the semiconductor industry.
Energy stocks dominated both ends of the S&P 500, as investors looked to cover short positions following the morning sell-off. Shares in Southwestern Energy Company (N:SWN), the session's top performer, added 0.86 or 13.19% to close at 7.38. Over the last year, the Houston-based oil and gas company are down by more than 70%. Others failed to recover from the early losses. Shares in Devon Energy Corporation (N:DVN) lost 1.89 or 8.05% to 21.59, ending the day as the worst performer.
On the New York Stock Exchange, declining issues outnumbered advancing ones by a 2,248-862 margin.