US stocks recover a part of Wednesday’s post-Fed dip

Major US equity indices witnessed a positive opening on Thursday and recovered a part of the previous session’s post-Fed dip.

The Fed on Wednesday reaffirmed that it remains on track to raise interest rates further in December and three more times in 2019, which eventually weighed on perceived riskier assets – like equities.  

Economic data released on Thursday showed that the US economic growth in the second quarter of 2018 stood at 4.2% annualized pace, the fastest pace in nearly four years, and remained supportive of the early uptick.  

Adding to this, orders for durable goods rose 4.5% m/m in August and surpassed even the most optimistic estimates, offsetting a slight disappointment from the core durable goods orders and higher than expected rise in the initial weekly jobless claims.

At the time of writing this report, the Dow Jones Industrial Average was up around 30-points to 26,418 and the broader S&P 500 Index climbed nearly 8-points to 2,913. Meanwhile, tech-heavy Nasdaq Composite Index added over 35-points to 8,046.