NEW YORK (TheStreet) -- Stocks got a temporary bounce Wednesday after New York Federal Reserve Bank President William Dudley indicated that a decision on a rate hike in September rate "seems less compelling."

Although Dudley also said that the Fed will reassess the situation at its September meeting, the market interpreted his comments as a clear sign that a September rate hike was unlikely. 

Stocks fell back a bit as it became clearer that Dudley was not explicitly saying there wouldn't be a September rate hike. The S&P 500 was up 1.6%, the Dow Jones Industrial Average climbed 1.7% or 258 points, and the Nasdaq jumped 1.7%.

"From my perspective, at this moment, the decision to begin the normalization process at the September FOMC meeting seems less compelling to me than it was a few weeks ago," Dudley said during a press conference on Wednesday morning. 

The Fed will meet on Sept. 16-17 to discuss monetary policy. Investors believe there is a 24% chance of a rate hike in September, according to the CME Group Fed futures funds. 

U.S. durable goods orders posted a surprise increase of 2% in July, driven by strong demand for machinery, computers and electronics, and autos. Orders for core capital goods, a proxy for business investment, jumped 2.2%, its biggest increase in 13 months. Economists had expected the headline number to decrease 0.6%.

The People's Bank of China made another move to revive its economy on Wednesday after announcing plans to inject 140 billion yuan ($21.80 billion) into its financial system. The stimulus will take the form of a short-term liquidity adjustment (SLO) operation, a measure introduced in 2013 to calm fluctuations in liquidity.

China's stock market was gripped with volatility on Wednesday, ending down 1.3% after whipping between gains and losses as big as 4%. A day earlier, the People's Bank of China cut interest rates, another attempt to revive its flagging economy.

Global markets were mixed on Wednesday. Germany's DAX fell 0.41%, France's CAC 40 slipped 1.8%, and the FTSE 100 in London slid 0.54%. In Asia, the Hang Seng in Hong Kong tumbled 1.5% but Japan's Nikkei rose 3.2%.

High-momentum tech stocks were again on the move on Wednesday after big losses suffered earlier in the week. Apple (AAPL - Get Report) jumped 3%, Netflix (NFLX - Get Report) climbed 4%, Google (GOOGL - Get Report) added 4.5%, Facebook (FB - Get Report) was up 2.8%, and Amazon (AMZN - Get Report) rose 3.9%.

In U.S. markets Tuesday, rally momentum faded in the final hour of trading after a promising morning that wiped out the losses of "Black Monday." Benchmark indexes closed out the day with losses of more than 1%.

Schlumberger (SLB - Get Report) slumped more than 4% after announcing it will acquire oilfield equipment company Cameron International (CAM) in a cash-and-stock deal worth $14.8 billion. The deal values Cameron at a 56% premium to its closing price on Tuesday.

Transocean (RIG - Get Report) fell more than 2% after it said its board is looking to suspend its quarterly dividend payments for the remainder of the year. Transocean's board will present the proposal at its Oct. 29 shareholder meeting.

Express (EXPR - Get Report)  added more than 17% after a better-than-expected second quarter. The retailer earned 25 cents a share, 9 cents above forecasts, while sales of $535.58 million jumped 11.3% from a year earlier.

Abercrombie & Fitch (ANF - Get Report) jumped nearly 12% after swinging to a surprise quarterly profit. The company earned 12 cents a share, far better than an expected loss of 4 cents a share. The retailer reported same-store sales down 4%, narrower than a forecast 4% drop.

Oshkosh (OSK - Get Report)  climbed 4.9% after the U.S. army awarded the defense company with an eight-year contract to build at least 17,000 armored trucks. The deal is worth $30 billion.