U.S. stocks rebound strongly as dollar falls

U.S. stocks bounced back in the morning session on Thursday following two consecutive sharp decline, as the U.S. dollar softened after a big rally in the past few days.

At midday, the Dow Jones Industrial Average surged 191.24 points, or 1.08 percent, to 17,826.63. The S&P 500 added 19.14 points, or 0.94 percent, to 2,059.38. The Nasdaq Composite Index rose 25.55 points, or 0.53 percent, to 4,875.49.

The dollar fell nearly 1 percent Thursday, giving stocks and some commodities respite. U.S. February retail sales data also came out surprisingly weak, which gave investors some relief that the Federal Reserve may not begin hiking rates as early as anticipated.

The U.S. dollar climbed to a 12-year high against the euro on Wednesday as the European Central Bank added stimulus into the economy while the Fed was moving closer to an interest rate hike.

Economic data came out mixed. Retail trade sales for February were down 0.6 percent from January, well below market expectations of a 0.3-percent gain, the U.S. Commerce Department said Thursday.

"Sales weakness was led by a 2.5 percent drop in vehicle and parts spending, which contributes 20 percent to the index. It is hard to put a positive spin on such a bad report. If the recent weakness in auto sales is only temporary, the drag could subside this spring," said Jay Morelock, an economist at FTN Financial, in a note.

In the week ended March 7, the advance figure for seasonally adjusted initial jobless claims was 289,000, a decrease of 36,000 from the previous week's revised level, said the U.S. Labor Department Thursday. Endite