On Thursday, the three major indices of the USA stock market collectively rebounded, $S&P 500 Index (.SPX.US)$ increased by 0.37%, $Nasdaq Composite Index (.IXIC.US)$ 、 $Dow Jones Industrial Average (.DJI.US)$ increased by 0.35%.

Some analysts and investors believe that the market's initial reaction to the Federal Reserve's policies may have been overinterpreted, and the strong performance of the USA economy could drive the stock market further up.

John Bilton, head of the global multi-asset strategy at JPMorgan Asset Management, stated: "What we see is a splash of cold water on the overall good economy. For next year, I hold a constructive view. If I were a bull, I would definitely like a healthy pullback."

Florian Ielpo, head of macro research at Lombard Odier, stated: "The stock market's reaction to the change in the Federal Reserve's stance may be too intense, possibly because the market was not adequately prepared." However, he also mentioned, "A hawkish rate cut suggests that recent profits could be stronger than expected, which may be a factor the market needs to reassess."

The Federal Reserve announced Wednesday that it has lowered its benchmark overnight lending rate by 25 basis points to a target Range of 4.25%-4.5%. The officials' dot plot for future rate paths shows that the Fed is expected to cut rates only twice next year, whereas they predicted four rate cuts in September.

The current focus of the market is how Federal Reserve policymakers will act in 2025.

Jeff Buchbinder, chief equity strategist at LPL Financial, commented on the sharp decline of the US stock market on Wednesday, saying: "The prolonged position adjustments and tension made US stocks susceptible to sell-offs. The significant jump in inflation expectations and the associated bond sell-off are obvious reasons. Once the support from technology stocks disappears, no other QITABANKUAI can step in to fill this huge gap."

Federal Reserve Chairman Powell did not immediately provide much comfort to investors.

In a press conference after the Federal Reserve meeting, Powell stated: "Our interest rate is about 4.3%—it has a fairly significant restrictive effect, and I believe this is a well-considered interest rate number. We can continue to make progress in curbing inflation while maintaining a strong labor market."

Powell also pointed out that recent interest rate cuts have made the central bank "more cautious when considering further adjustments to the policy rate," and that future rate cuts would require further progress on inflation.

Investors also noted that Powell mentioned some Federal Reserve officials are evaluating the Trump administration's policies, such as the potential impact of increased trade and tax cuts on policy. Rob Thompson, a macro rates strategist at Royal Bank of Canada Capital Markets, stated: "The inflation pressures that might arise from the Trump administration are a risk that the market has not fully addressed."

Focus on individual stocks

Growth Tech stocks generally rose, $NVIDIA (NVDA.US)$ 、 $Amazon (AMZN.US)$ Up more than 2%, $Tesla (TSLA.US)$ 、 $Meta Platforms (META.US)$ Rises exceed 1%.

Quantum Computing concept Stocks are generally correcting, $Quantum (QMCO.US)$ Falling more than 35%, $Quantum Computing (QUBT.US)$ Dropped over 34%, $Rigetti Computing (RGTI.US)$ 、 $D-Wave Quantum (QBTS.US)$ Dropped over 23%, $Arqit Quantum (ARQQ.US)$ Dropped over 18%.

Some AI Application software stocks rose. $Palantir (PLTR.US)$ Up nearly 4%, $Applovin (APP.US)$ 、 $ServiceNow (NOW.US)$ Increased by more than 1%. $Salesforce (CRM.US)$ Wait for the follow-up increase.

Some China Concept Stocks have risen. $Li Auto (LI.US)$ is up over 4%, $ZEEKR (ZK.US)$ 、 $NIO Inc (NIO.US)$ Increased by over 3%. $Bilibili (BILI.US)$ 、 $XPeng (XPEV.US)$ Increased by over 2%.

$Micron Technology (MU.US)$ Fell by over 17%, and the guidance for the second fiscal quarter was below expectations. Bank of America Merrill Lynch downgraded Micron Technology's rating to neutral from buy.

$Accenture (ACN.US)$ Surged nearly 7%, partnering with NVIDIA to promote AI adoption by enterprises, and performance exceeded expectations again.

Editor/Somer