The Dow Jones Industrial Average and Standard & Poor’s 500 fell as much as 4.5 percent on Wednesday following the Senate’s final vote on a bill to tax corporate income and dividends.
The Dow rose 2.2 percent to 2,972.79 and the S&P 500 lost 1.5 of a point to 1,927.24.
Both indexes had lost about one-third of their value since Monday.
The tax bill will be approved by the Senate Finance Committee on Thursday.
The Senate also voted Tuesday to advance a tax overhaul package, which has been expected to pass the House and could be signed by President Donald Trump.
Trump had threatened to veto the tax bill.
“We don’t need to make another deal,” Trump said at a news conference Tuesday.
“It’s too bad the Democrats can’t even make a deal on it, but I think the Republicans can do it.”