US stocks open higher, extending rally

NEW YORK: Wall Street stocks opened higher Wednesday, extending a recent upward push amid aggressive stimulus measures that have largely offset worries about new coronavirus cases.

Briefing.com analyst Patrick O'Hare said an unprecedented series of initiatives by the Federal Reserve and other central banks has underpinned investor confidence, offsetting concerns about a new COVID-19 outbreak in Beijing that has sparked fresh restrictions in the Chinese capital.

"Monetary policy is running fast and loose and the stock market is riding that understanding for all its worth," O'Hare said.

About 10 minutes into trading, the Dow Jones Industrial Average stood at 26,295.92, up less than 0.1 percent.

The broad-based S&P 500 edged up 0.1 percent to 3,127.91, while the tech-rich Nasdaq Composite Index advanced 0.5 percent to 9,942.37.

Wednesday's calendar includes a second day of congressional testimony from Fed Chair Jerome Powell, who on Tuesday pledged to continue to use the Fed's programs to support the economy following the hit from coronavirus shutdowns.

New home construction in May rose 4.3 percent compared to April, the Commerce Department said, as activity began to resume despite the coronavirus pandemic.

However the pace of homebuilding hit a seasonally adjusted annual rate of 974,000, far short of what analysts had forecast and 23.2 percent below May 2019, according to the data.