"I see two things happening," said Mike Zigmont, head of research and trading at Harvest Volatility Management in New York. "I see a reflexive dip-buying validation and I see the market embracing a dovish Fed"
Twitter Inc gained 4.2pc after it reported quarterly revenue growth, while Snapchat-owner Snap Inc surged 22.5pc on beating estimates for user growth and revenue.
All three major U.S. stock indexes ended the session sharply lower, with the S&P and the Nasdaq suffering their largest one-day percentage drop since mid-May.
The S&P 500 has rallied about 17% so far this year, with some investors questioning how long Wall Street's rally may last and concerned about a potential downturn.
The blue-chip Dow joined the bellwether S&P in positive territory, but a decline in tech shares - led by microchips - helped pull the Nasdaq slightly lower.