Price action in the fixed-income market suggested bonds are in the process of finding a bottom, even as incoming data indicated inflation remains a problem. At the same time, during yet another difficult day for technology, the three main stock indexes rallied for modest gains on Wednesday.

By the closing bell, the blue-chip Dow Jones Industrial Average had added 1.1% to 52,177, the broad-based S&P 500 was up 0.3% at 7,744, and the tech-heavy Nasdaq Composite had rallied for a 0.08% gain to 26,713.

"As horrific as the PPI was," Louis Navellier of Navellier & Associates says, "believe it or not, Treasury yields actually declined on the perception that this may be the peak in the poor inflation news."

From just $107.88 $24.99 for Kiplinger Personal Finance

Become a smarter, better informed investor.…