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U.S. stocks bounced back Thursday from a hectic day of selling sparked by the Federal Reserve's hawkish policy outlook. At the open, the Dow Jones Industrial Average gained 0.32%, the S&P 500 rose 0.69%, and the Nasdaq Composite climbed 0.89%.
Investors were surprised Wednesday when the Fed projected fewer interest rate cuts and higher inflation for 2025. This surprise reversal of stance resulted in a strong sell-off in growth stocks that revolve around interest rate thermometers.
Investors are cautiously reassessing the Fed message, which is helping to support the early rebound. Yet worries about inflation and how fast rates will be cut in the near term could tarnish market ardour. Analysts will closely watch economic data releases and Fed rhetoric for additional clues about the central bank's monetary policy trajectory.
This article first appeared on GuruFocus.