Nasdaq ends up 0.3%, exits correction territory

After posting its best start to March ever on signs the U.S. economy is perking up, U.S. stocks managed modest gains and the Nasdaq exited correction territory Wednesday as investors digested the latest upward move and Super Tuesday results.

Stocks were feeling slightly less bullish on the second day of the month, staying negative for much of the day before climbing above break-even for good about mid-afternoon.

The S&P 500 index climbed 0.4%, while the Dow gained 0.2% and the Nasdaq composite ended 0.3% higher. All three benchmarks are now out of correction territory, meaning they are less than 10% down from their recent bull-market highs. The Nasdaq's nearly 14-point gain puts it 9.88% below its recent high.

March started strong, with the Standard & Poor's 500 rallying 2.4% Tuesday, its best first day of March in the broad stock index's history, according to Bespoke Investment Group. The Dow Jones industrial average also soared, jumping nearly 350 points.

Tuesday's rally, which was powered in part by incoming economic data that suggests that recession fears are overblown, was viewed through a positive lens by Wall Street.

"The overall price action has to be described as impressively resilient," Robert Sluymer, a technical analyst at RBC Capital Markets, said in a client note after Tuesday's massive surge. Another plus is that more aggressive stocks led the charge, with so-called defensive stocks and bond proxies lagging.

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The next level for the S&P 500 to hurdle -- after closing Tuesday at 1978.35 -- is the 1990 to 2000 level, adds Sluymer.

Wall Street also woke up to a presidential campaign in which Democrat Hillary Clinton and Republican Donald Trump increased their leads against rivals after Super Tuesday voting in 11 states. Investors are closely watching the campaign as government-driven policies impact the performance of the economy and stock market.

Ed Yardeni, chief investment strategist at Yardeni Research, said Wall Street is enjoying yet another "relief rally" after another panic attack, a market reaction that has been replayed many times in the current bull market.

Foreign stocks were mixed. Asian shares followed Wall Street's big rally Tuesday with one of their own. The Nikkei 225 in Japan soared 4.1%, the Hang Seng index in Hong Kong rose 3.1% and shares of mainland China's Shanghai composite jumped 4.3%.

European shares were mostly higher. The broad Stoxx Europe 600 index was 0.7% higher. Germany's DAX index gained 0.6% and the CAC 40 in Paris was up 0.4%. London's FTSE index fell 0.1%.

Adam Shell on Twitter: @adamshell.