NEW YORK — A rally for Apple led Wall Street higher on Wednesday as U.S. stocks reclaimed more of their sharp losses from last week. The Standard & Poor’s 500 rose 0.7%. The Dow Jones Industrial Average added 81 points, or 0.2%, and the Nasdaq composite climbed 1.2%.

The bleak data did not just trigger the market selloff but also forced a dramatic rethink of the Fed's rate trajectory. Traders, who had been leaning toward another pause in September, are now seeing an 85% chance of a rate cut,

Wall Street opened higher on Wednesday, as ongoing optimism about Federal Reserve interest rate cuts kept markets afloat and investors assessed a fresh wave of corporate earnings.

Global stocks rose for a second session on Tuesday and the U.S. dollar steadied as investors raised bets the Federal Reserve would act to prop up the world's largest economy.