U.S. stocks rose on opening Wednesday after Federal Reserve chair Jerome Powell's planned testimony to Congress at 10.00 am Eastern indicated a likely interest rate cut later this month.
The Dow Jones Industrial Average was up 0.36% at 26,886, while the S&P 500 rose 0.41% to 2992 and the Nasdaq gained 0.65% to 8,193. All three indexes remain close to record highs seen in June. Powell noted that while the U.S. jobs market remains robust and consumer spending appears set to rebound, business investment has slowed considerably, along with housing investment and manufacturing output.
"Since [the Fed meeting in mid-June], based on incoming data and other developments, it appears that uncertainties around trade tensions and concerns about the strength of the global economy continue to weigh on the U.S. economic outlook," Powell said.