(CNBC) The Dow Jones Industrial Average traded higher on Thursday, erasing steep losses a day after posting a historic surge.
The 30-stock index traded 157 points higher after plunging 611 points earlier in the day. The S&P 500 held 0.5 percent higher after sliding more than 2 percent. The Nasdaq Composite traded 0.2 percent higher after dropping more than 3 percent.
"You went from $200 million to sell [at the close] which was less than expected. That started the early rally. Now there's over $2 billion to buy, " said Art Cashin, director of floor operations at UBS. "They thought were going to be huge sellers, now they're huge buyers."
Advertisement - story continues below
Earlier in the day, stocks fell amid renewed tensions between China and the United States.