XOM Exxon Mobil Corp

By Georgi Kantchev and Michael Wursthorn 

Technology and other fast-growing stocks rebounded Wednesday, halting a stock-market selloff that has left investors on edge as to whether the longest bull market ever can regain its step.

Shares of social-networking firm Facebook, Google parent Alphabet and retail giant Amazon.com all notched gains to pull the S&P 500 higher after two days of selling wiped out $810 billion in value from the benchmark index. A recovery in oil prices helped send shares of Chevron and Exxon Mobil up, while a handful of upbeat earnings reports also contributed to the gains.

Investors were taking advantage of the deep drawdowns those stocks suffered in recent days, analysts said. The gains also followed news that Amazon.com is working on efforts to expand the retailer's digital payment business, and a TV interview in which Facebook's chief executive addressed several controversies swirling around the social-media giant.

Those stocks' ability to buoy major indexes and stem the pullback underscores their influence, analysts said, making them a closely watched group for investors who are hoping the S&P 500 can avoid further drawdowns.

"You need technology to help lead this market out of the rut it's currently in," said Lindsey Bell, an investment strategist at CFRA Research, adding that the market capitalizations of those stocks make up a significant portion of the S&P 500.

Trading was light on Wednesday, a day before the Thanksgiving holiday. Roughly 6.4 billion shares changed hands, the lowest trading volume since Sept. 27. The S&P 500 rose 8.04 points, or 0.3%, to 2649.93 to snap a two-day losing streak, while the tech-heavy Nasdaq Composite gained 63.43 points, or 0.9%, to 6972.25, its first advance in four trading sessions.

The Dow Jones Industrial Average, meanwhile, ended the day flat, falling less than a point to 24464.69. The blue-chip index had been up more than 150 points earlier in the session, but those gains were eroded after an appeals court ruled that generic versions of Johnson & Johnson's prostate-cancer treatment Zytiga may go on sale, sending shares of the company down $4.46, or 3%, to $141.99.

Both the Dow industrials and the S&P 500 remain down for the year, leaving the indexes at risk for their first annual loss since 2015. The Nasdaq is up just 1% for 2018, on pace for its weakest gain in seven years.

A crush of concerns threatens to unravel stocks even further, from signs of slowing economic growth, which have the potential to crimp profits, to a continuing trade spat that has exacerbated investors' dismay, analysts said.

Also among those worries: Investors are increasingly fearful that the Federal Reserve could commit a misstep if it proceeds with an aggressive pace of interest-rate increases.

Some investors, however, see little evidence of a looming recession and point to still-strong corporate earnings. Investment firm Icon Advisers has avoided selling during the drawdown, believing the bull market remains intact, said Craig Callahan, the firm's president. "We are riding through this," he added.

UBS Global Wealth Management said in a note that it recently increased its exposure to stocks around the world, saying the selloff was a necessary repricing, making equities more desirable.

Among Wednesday's gainers were shares of Amazon and Facebook. The internet retail giant added 21.27, or 1.4%, to 1,516.73 after The Wall Street Journal reported the company is working to persuade bricks-and-mortar merchants to accept its Amazon Pay digital wallet.

Facebook shares gained 2.39, or 1.8%, to 134.82 after CEO Mark Zuckerberg responded to recent criticism directed at the company and said he hoped to continue working with his longtime chief operating officer, Sheryl Sandberg.

Shares of other tech giants, including Alphabet and Microsoft, also rose to help pare their losses for the month.

S&P 500 energy stocks contributed to the S&P 500's gain, with those companies adding 1.6% after a bounce back in oil prices.

The broad index's best-performing stock, Foot Locker, added 6.87, or 15%, to 52.96 after the sporting-goods retailer reported strong same-store sales late in the day on Tuesday.

Write to Georgi Kantchev at georgi.kantchev@wsj.com and Michael Wursthorn at Michael.Wursthorn@wsj.com

(END) Dow Jones Newswires

November 21, 2018 18:19 ET (23:19 GMT)

Copyright (c) 2018 Dow Jones & Company, Inc.