The Dow is working on its biggest comeback in 9 months as the Nasdaq aims for its best intraday turnaround since March

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A comeback for the ages it isn’t. But the Dow Jones Industrial Average and the Nasdaq Composite Index’s attempts on Wednesday to finish in positive territory would be one their biggest comebacks in months.

At last check, the Dow DJIA, +0.30% was trading near break even but in negative territory but if it finished in the green, it would mark the biggest intraday turnaround for the blue-chip index since Dec. 21, 2020, according to the folks at Dow Jones Market Data. The price-weighted index had been down by as much as 1.3% at Wednesday’s low.

Meanwhile, the beleaguered Nasdaq Composite COMP, +0.47% was trading 0.2% higher and had been down 1.2% around its intraday nadir. If the technology-laden index manages to eke out a positive finish on the tumultuous session it would represent its best comeback since March 25.

The Dow, Nasdaq Composite and S&P 500 index SPX, +0.41% all got off to woeful starts on Wednesday as concerns about inflation and the debt-ceiling debate in Washington cast a pall over Wall Street and dulled a turnaround on Tuesday that helped stocks regain some of their bullish luster.

The stock market began to gain some altitude on Wednesday as Senate Minority Leader Mitch McConnell was seen extending an olive branch to Democrats in tense budget talks that have the debt ceiling in its crosshairs. McConnell has made a new offer to the Democratic-run Senate to “use normal procedures to pass an emergency debt limit extension at a fixed dollar amount to cover current spending levels into December,” the Kentucky Republican, said in a statement.

A clash over the U.S. budget if not resolved by Oct. 18 holds the potential for a U.S. government default due to the debt-ceiling standoff, which has spurred President Joe Biden and Treasury Secretary Janet Yellen to warn about possible major economic damage.