US: Stocks resume climb as Biden relief plan nears passage

[NEW YORK] Wall Street stocks opened higher on Wednesday as traders awaited congressional passage of President Joe Biden's US$1.9 trillion stimulus plan, which is expected to boost the US economy's recovery.

Markets had flinched in recent sessions after bond yields rose in a sign that the injection of government cash into the economy could send inflation upwards and push the Federal Reserve to raise rates.

But a government report released before markets opened showed no sign of an inflationary spike in February, and indices resumed upward progress that had begun on Tuesday as investors snapped up equities that had been hurt in recent sell-offs.

About 30 minutes into trading on Wednesday, the benchmark Dow Jones Industrial Average was up 1.0 per cent to 32,146.42.

The broad-based S&P 500 climbed 0.8 per cent to 3,906.97, while the tech-rich Nasdaq Composite Index, which has been under pressure in recent weeks, rose 1.1 per cent to 13,212.63.

Mr Biden's massive rescue package was set for a vote later in the day in the House of Representatives, and includes hundreds of billions of dollars aimed at improving Covid-19 vaccinations and supporting the unemployed, as well as paying for another round of stimulus checks for consumers.

Patrick O'Hare of Briefing.com said Labor Department data showing the Consumer Price Index rising 0.4 per cent, or about as much as analysts had expected, in February propelled the upbeat opening.

"The key takeaway from the report is the recognition that it didn't contain any headline surprises to fan the flames of inflation concerns," he said.

General Electric fell 5.8 percent after announcing it would sell its aircraft leasing subsidiary Gecas to Ireland's AerCap in a US$30 billion deal that will create a massive aviation company.

AFP