NEW YORK (CNN/Money) - Stocks bounced back Wednesday morning, heading higher after the previous session's selloff in which the Federal Reserve boosted interest rates and signaled it would continue to do so.

The Dow Jones industrial average (down 11.77 to 10,395.00, Charts) and the S&P 500 (up 0.39 to 1,203.15, Charts) index saw modest gains in the early going, while the Nasdaq composite (up 3.65 to 2,117.70, Charts) jumped 0.5 percent.

The major gauges had fallen Tuesday amid Dell's profit warning and the Fed announcement. The central bank boosted the Fed funds rate, an overnight bank lending rate, by a quarter-percentage point to 4 percent, as expected. The Fed also indicated that it would continue to raise rates for the foreseeable future.

U.S. light crude oil for December delivery fell 19 cents to $59.66 a barrel in electronic trading, falling ahead of the weekly inventories report, due out at around 10:30 a.m. ET.

Among stock movers, Time Warner (up $0.43 to $18.00, Research) gained more than two percent after reporting higher quarterly earnings that topped estimates and boosting its stock buyback plan. Time Warner is the parent of CNN/Money.

On the downside, shares of Mercury Interactive (down $11.26 to $23.74, Research) slumped 34 percent after the company's chief executive and chief financial officer resigned and the company said it would delay earnings, all related to an internal investigation that revealed the misuse of stock option grants.

Treasury prices slipped, raising the yield on the 10-year note to 4.60 percent from 4.56 percent late Tuesday. Treasury prices and yields move in opposite directions.

The dollar slipped versus the euro and was little changed versus the yen.

COMEX gold rose $1.90 to $462.50 an ounce.

In global trade, major Asian markets ended higher and European shares weakened at midday.