Reversal of Fortune for Stocks

Updated from 4:03 p.m. EST

Stocks recovered from steep losses and finished mostly higher Thursday, following Wednesday's selloff on interest rate paranoia spurred by the Fed's revised monetary policy statement. Strategists were divided over whether the market was undergoing periodic profit-taking or experiencing the beginning of a long-anticipated correction.

The Dow gained 41.92 points, or 0.4%, to 10,510.29; the S&P 500 rose 5.63 points, or 0.5%, to 1134.11; and the Nasdaq declined 9.14 points, or 0.4%, to 2068.23.

Volume was heavy, with 1.92 billion shares traded on the New York Stock Exchange, while 2.61 billion shares exchanged hands on the Nasdaq. Decliners outpaced advancers by about 2 to 1 in both markets. ...