Here’s the reason behind this week’s stock turnaround

Stock markets tried their best Wednesday to maintain a two-day rally that saw some of the biggest single-day gains since April 2020, when markets initially rebounded from shutdowns in the early days of the coronavirus pandemic.

The Dow Jones Industrial Average closed down 41 points at 30,274 Wednesday, after dipping more than 400 points in the morning trading session. The S&P 500 stayed about level, dipping 0.2 percent after rising 5.6 percent on Monday and Tuesday.

The rally earlier this week, which saw the Dow rise more than 1,500 points, was due in large part to a report from the Labor Department that high levels of employment within the U.S. economy may be declining — a sign that the Federal Reserve could potentially discontinue hiking interest rates to battle record inflation.