NEW YORK: Wall Street stocks bounced Thursday, winning back some of the losses suffered in the prior session following the Federal Reserve's first interest rate cut in more than a decade.
Major indices dropped more than one percent in the wake of the rate decision Wednesday, which was followed by a confusing news conference by Fed Chair Jerome Powell who tried to justify the move and explain the implications for monetary policy in coming months.
About 30 minutes into trading Thursday, the Dow Jones Industrial Average regained 0.2 percent to 26,922.05.
The broad-based S&P 500 recovered 0.3 percent to 2,990.04, while the tech-rich Nasdaq Composite Index climbed 0.8 percent 8,237.16.
Briefing.com analyst Patrick O'Hare called Powell's press conference "befuddling" and a "failed communication effort" that exposed investors who got "carried away with rate-cut expectations."
O'Hare noted that the dollar continued to strengthen Thursday, which could create pressure on the Fed for further rate cuts down the line. The dollar would normally be expected to weaken when interest rates fall, as investors go in search of higher yields elsewhere.
Among individual companies, General Motors jumped nearly three percent after reporting better-than-expected quarterly earnings. Strong sales of pricey, high-end pickup trucks in North America offset a decline in overall vehicle sales.
Shares of several chip companies rallied after Western Digital said key products could be in a "trough," setting the scene for better results down the road.
Western Digital surged 5.7 percent and Micron, Broadcom and Lam Research all rose.
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