The U.S. stock market is recovering Wednesday from two days of punishing swings after oil prices stopped spiking and reports gave encouraging updates on the economy.

The U.S. stock market is holding steadier Wednesday following two days of punishing swings driven by worries about how high oil prices will go because of the war with Iran.

Stocks looked set to rally on Wednesday as investors hoped the conflict in the Middle East would not escalate into a long and drawn-out war. Futures tracking the Dow Jones Industrial Average climbed 106 points,

Tehran's threat to attack vessels in the Strait of Hormuz, combined with production halts, has driven up shipping rates and crude prices.

Oil prices leaped Monday on worries that war with Iran could clog the global flow of crude and make inflation even worse. U.S. stocks, meanwhile, swung from sharp losses to a tiny gain. Crude prices jumped more than 6%,

The U.S. stock market is rising after oil prices stopped spiking and reports gave encouraging updates on the economy. The S&P 500 rose 0.7% Wednesday. The Dow Jones Industrial Average

A sell-off for stocks slammed into Wall Street on Tuesday caused a steep fall in the morning and a labored attempt to recover from the drop by midday. (AP Photo)