Wall Street rallied Thursday morning, after a severe routing on Wednesday that saw all three major indices notch their biggest declines of the year on fears of an impending recession.

By midmorning, the Dow Jones Industrial Average had gained around 100 points. The S&P 500 was up by just under 0.4 percent and the Nasdaq had posted gains of around 0.2 percent.

Thursday's rally was a stark contrast to Wednesday's market activity, when all three major indices lost around 3 percent of their value after the yield on the benchmark 10-year Treasury note fell below the 2-year rate, and data from China and Germany showed continued economic contraction.

Global markets continued to tumble overnight after China vowed to retaliate for President Donald Trump's latest round of tariffs but quickly recovered after Beijing signaled a willingness to compromise.

China’s Foreign Ministry said Thursday it “hopes the U.S. side will meet China halfway, and implement the consensus reached by the two leaders during their meeting in Osaka.”

 A positive quarterly earnings report from Walmart, which had earlier warned it would be forced to raise prices on a number of products due to the increase in tariffs, gave the stock market an additional boost. Alibaba, China's equivalent of Amazon, recorded a 42 percent increase in revenue, edging up markets in Asia.