Stocks bounced back after two consecutive days of declines. Investors had recently put the brakes on what had been a furious rally in stocks in recent weeks, leaving the major indexes hovering near records. Some of the caution eased on Wednesday, as stocks jumped and recouped some of their losses. The S&P 500 gained 38.48 points, or 0.9%, to 4173.42, with gains accelerating later in the session. The Nasdaq Composite added 163.95 points, 1.2%, to 13950.22. The Dow Jones Industrial Average added 316.01 points, or 0.9%, to 34137.31. In the Market Some analysts said the recent stretch of declines was a healthy pause for stocks and that there are bigger gains ahead. “I think that the market will continue to grind higher,” said Mike Lewis, head of U.S. equities cash trading at Barclays. Investors are also monitoring earnings to see if the current valuations of expensive stocks can be justified. Netflix was the biggest loser in the S&P 500 after the company said subscriber growth for the first quarter was weaker than expected. The company’s shares fell $40.67, or 7.4% to $508.90. Still, declines in shares of Netflix and other tech giants like Facebook were outweighed by gains in shares of more cyclical companies like cruise operators and retailers. Some analysts have said these groups can continue to outperform. JPMorgan Chase strategists said in a note to clients that they expect cyclical sectors like energy and financials stocks to perform well. Norwegian Cruise Line was one of the best performers in the S&P 500, adding $2.76, or 10%, to $29.51. Carnival advanced $1.61 to 6.3%, to $27.33. In bond markets, the 10-year U.S. Treasury yield edged up to 1.566% from 1.562% on Tuesday. Yields rise as prices fall. Still, a new wave of Covid-19 infections is sweeping through a number of countries including India and Japan, raising the prospect of fresh hurdles to the anticipated global economic rebound. Health authorities are also warning that new variants may emerge that are resistant to the existing batch of coronavirus vaccines. “There are still risks in this market, particularly as it relates to the vaccine rollout and virus mutations,” said Shoqat Bunglawala, head of international multiasset investments at Goldman Sachs Asset Management. “We’re still likely to be in an environment with some volatility.” Overseas, the pan-continental Stoxx Europe 600 ticked 0.7% higher after its biggest one-day drop since late December. In Asia, most major stock indexes closed lower. Japan’s Nikkei 225 fell 2%, while Hong Kong’s Hang Seng declined 1.8%. The Shanghai Composite Index ended the day relatively flat. Investors are looking to results to gauge whether high equity valuations are justified. Photo: Courtney Crow/NYSE/Associated Press Write to Caitlin Ostroff at caitlin.ostroff@wsj.com and Gunjan Banerji at Gunjan.Banerji@wsj.com Copyright ©2020 Dow Jones & Company, Inc. All Rights Reserved. 87990cbe856818d5eddac44c7b1cdeb8 Appeared in the April 22, 2021, print edition as 'Stocks Recoup Some of Week’s Losses.'