Wall Street rises sharply following heavy selloff

• CBOE Volatility Index erases more than 7% on Wednesday.
• Risk-sensitive technology shares lead the rally in early trade.
• All 11 major S&P 500 sectors trade in positive territory.

Wall Street's main indexes opened sharply higher on Wednesday after suffering heavy losses since the beginning of the week and closing the previous day at fresh multi-month lows. As of writing, the Dow Jones Industrial Average was up 1% on the day while the S&P 500 and the Nasdaq Composite were adding 1.1% and 1.5%, respectively.

Risk rally

The upbeat market mood seems to be driving Wednesday's rally. At the moment, the CBOE Volatility Index, Wall Street's fear gauge, is down more than 7% on the day.

Additionally, the risk-sensitive S&P Technology Index is up 1.5% in the early trade to confirm the positive sentiment. Moreover, all 11 major sectors of the S&P 500 trade in the positive territory.