The Dow Jones Industrial Average drifted up 18.08 points or 0.14 per cent to 12,619.27 in the first trades after losing more than 400 points in the prior two sessions.

The tech-dominated Nasdaq composite advanced 11.34 points or 0.46 per cent to 2,459.61 while the Standard & Poor's 500 broad-market index increased 2.08 points or 0.15 per cent to 1,392.79.

The market appeared to steady after a punishing session on Wednesday after crude oil prices spiked to record highs and the Federal Reserve slashed 2008 growth forecasts for the economy, while signaling a pause in interest rate cutting.

Al Goldman at AG Edwards said the market had been ready for a correction after strong gains in recent weeks.

Goldman said the disappointing reaction to the Fed's comments suggests this correction needs more time before the next buying opportunity for trading accounts. However, down over 400 Dow points in only two days goes a long way to work off short-term excesses and oil fears. -- AFP