Economy, Americas

US stock market opens higher to recover from Yellen's comments

VIX volatility index still up 1.6% at 18.60

Övünç Kutlu   | 05.05.2021
US stock market opens higher to recover from Yellen's comments


Major indexes on the US stock market opened higher Wednesday, recovering from the previous session’s losses amid Treasury Secretary Janet Yellen's comments that created fear among investors.

The Dow Jones increased 30 points to 34,163 at 9.40 a.m. EDT (1340GMT), while the S&P 500 rose 13 to 4,177.

The Nasdaq added 82 to 13,715 with tech shares recovering. Apple and Google's parent firm, Alphabet, were up 1.5% and 0.6%, respectively.

The VIX volatility index, however, was still up 1.6% at 18.60 after Yellen indicated Tuesday the Federal Reserve may have to raise interest rates to prevent the economy from overheating.

Yellen, who led the Fed Reserve from 2014 to 2018, later conceded her stance, saying she respects the Fed’s independence. "It’s not something I’m predicting or recommending" about interest rates, she added.

Her comments caused the S&P 500 to finish Tuesday 0.6% off, while the Nasdaq ended the day down 1.9%.

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