US stocks open higher, building on the previous session’s strong rally

Tracking strong gains across Asian and European equity markets, major US equity indices built on to their strong gains on Tuesday and opened higher on Wednesday.

In early trade, both the Dow Jones Industrial Average and the broader S&P 500 indices clocked gains in excess of 0.5%, with a gain of over 100 and 10 points respectively. Meanwhile, with a gain of around 0.3%, tech heavy Nasdaq Composite index was a relative under-performer vis-à-vis other major indices. Wednesday's up-move came after most major US indices on Tuesday logged their best daily gains in nearly three months.

Improving risk appetite

As crude oil extended its recovery towards the very important $50 psychological mark, falling gold and US Treasuries clearly points to a sharp up-surge in risk appetite, which has a positive impact on riskier asset class, like equities.

Some analyst are of the opinion that a Federal Reserve's move towards hiking interest rates could be looked upon as positive signs of a strong US economic recovery that would contribute towards boosting corporate earnings and positive environment for investment in equities.

Fed speeches

Investors now turn their focus to a flurry of Fed speeches due during the course of the day, namely - Philadelphia Fed President Patrick Harker, Minneapolis Fed President Neel Kashkari and Dallas Fed President Steven Kaplan, for further signs of a strong US economic recovery.

Individual movers

From individual stock moves, shares of Hewlett Packard Enterprise Co. surged over 10% and were the biggest gainer of the S&P 500 index. Meanwhile, Alibaba Group Holding Ltd.'s stock dropped over -4% after the China-based e-commerce giant disclosed in a filing that it was being investigated by the US Securities and Exchange Commission.