Stocks Pull Back from Steep Losses

Dow losses neared 5% at one point in Wednesday's session. But a late-day surge has some market watchers hopeful that a bottom has been reached

U.S. stocks pared back steep losses Wednesday after the Federal Reserve, in its anecdotal report of economic conditions, said the economy was "sluggish" even before last week's terrorist attacks. The release of the report sparked selling as worries mounted that the U.S. is headed for recession. Confusion over anti-terrorism plans also weighed on investors.

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