US stock indices try to recoup yesterday's heavy losses

US stock indices rose on Thursday amid attempts to recoup some recent losses following the Federal Reserve’s policy decision.

The Fed decided to cut interest rates by 25 basis points, the third such cut in a row, following a 0.5% cut in September, and a 0.25% cut in November. 

Thus, US interest rates have now reached the range of 4.25%-4.5% as expected.

The Fed pointed to steady US growth and improving labor markets, with unemployment still at low levels.

Earlier data showed US GDP grew 3.1% y/y in the third quarter, beating estimates of 2.8%, and up from 2.8% in the previous preliminary reading, and after a 3% increase in the second quarter. 

US unemployment claims fell to 220 thousand in the week ending December 14, beating estimates of 229 thousand, and down from 242 thousand in the previous reading. 

On trading, Dow Jones rose 0.5% as of 16:36 GMT, or 232 points to 42559 points, while S&P 500 rose 0.7%, or 42 points to 5914 points, as NASDAQ added 0.9%, or 180 points to 19,573 points.