Dow, S&P rebound from 2-day sharp selloff

U.S. stocks closed mixed on Friday, with the Dow Jones Industrial Average and the S&P 500 bouncing back after a massive two-day selloff triggered by the Federal Reserve's possible tapering of its bond purchases later this year. The Dow Jones Industrial Average rose 41.08 points, or 0.28 percent, to 14,799.40 points. The S&P 500 rallied 4.24 points, or 0.27 percent, to 1,592.43 points. The Nasdaq Composite Index shed 7.38 points, or 0.22 percent, to 3,357.25 points. For the week, the Dow and the S&P 500 lost 1.80 percent and 2. 11 percent respectively, their second worst weekly loss this year. The Nasdaq dipped 1.94 percent for the week. Wall Street opened higher, on the heels of a rebound in global stock markets on Friday, with Japan's benchmark Nikkei leading the fightback to close 1.66 percent higher. However, the U.S. equity market retreated in late morning trading session, led by techs. Oracle shares plunged 9.26 percent to 30.14 U.S. dollars after the enterprise software giant reported its fourth fiscal quarter earnings report late Thursday. Its net profit rose year-on-year but sales missed analysts' expectations. Financial shares also tumbled on reports that U.S. regulators are weighing the idea of doubling the capital requirement for the biggest banks in the country. The European stocks closed in red territory after posting gains earlier on Friday, also adding negative sentiment to the U.S. market. In the afternoon trading session, the market recovered again, sending the Dow and S&P 500 into green territory, as most analysts believe the sharp fall in the equity market Wednesday and Thursday was a bit overdone. On the previous trading day, the three stock indices dropped to their lowest levels over one and a half months. The Dow and S&P 500 logged their biggest one-day losses since November 2011. Fed Chairman Ben Bernanke struck a hawkish chord at a news conference on Wednesday following a two-day policy meeting by saying bond buying could be reduced later this year, depending on conditions. St. Louis Fed President James Bullard, one of the two members of the Federal Open Market Committee who dissented with the June meeting decision, said in a statement Friday that "the Committee's decision to authorize the Chairman to lay out a more elaborate plan for reducing the pace of asset purchases was inappropriately timed." "Policy actions should be undertaken to meet policy objectives, not calendar objectives," Bullard added. There were no major economic data for release on Friday.