Forex
Stocks Bounce Back as Investors Doubt Fed's Inflation Tackling Abilities
Stocks rebounded Thursday morning after a steep sell-off following the Federal Reserve's meeting, as investors grew doubtful about Fed Chair Kevin Warsh's willingness to tackle inflation by raising interest rates.
The Dow Jones Industrial Average rose 194 points, or 0.4%, by about 9:40 a.m. ET, while the S&P 500 and Nasdaq jumped 0.8% and 1.6%, respectively.
On Wednesday, the three major stock indexes saw wild swings during Warsh's second meeting as chairman, eventually turning red, with the Dow losing 1,150 points, as traders took higher bond yields as a sign that the Fed is falling behind in the fight against inflation as it holds rates steady.