Stocks Opened Higher after Powell Remarks

U.S. stocks opened higher on Wednesday after prepared remarks from Federal Reserve Chair Jerome Powell’s congressional testimony suggested the central bank remained open to a near-term rate cut. The Dow Jones Industrial Average lately rose 133.09 points, or 0.50%, to 26,916.58. The S&P 500 advanced 16.23 points, or 0.54%, to 2,995.86. The Nasdaq Composite gained 67.76 points, or 0.83%, to 8,209.49.

Oil prices shot higher Wednesday, as preliminary U.S. data showed a larger-than-expected drop in supply. August West Texas Intermediate crude rose $1.38, or 2.3%, to $59.20 a barrel. September Brent climbed $1.45, or 2.2%, to $65.61 a barrel.

Federal Reserve Chairman Jerome Powell said Wednesday that the U.S economy is suffering from a bout of uncertainty caused by trade tension and slower global growth and he pledged again that the central bank would act as needed to support demand.