Stocks in tech-inspired rally

NEW YORK (CNNMoney.com) -- U.S. stocks moved higher on Wall Street at Wednesday's open as investors ignored a rain-soaked morning in the New York area and instead were reassured by stellar earnings from Cisco System and the Federal Reserve's latest view on inflation.

The tech-heavy Nasdaq Composite index (up 14.27 to 2,561.60, Charts) gained more than 1 percent while the broader S&P 500 (up 9.04 to 1,476.71, Charts) rose 0.5 percent.

The Dow Jones industrial average (up 35.52 to 13,504.30, Charts) rose about 0.4 percent in early trade.

The Fed acknowledged Tuesday that "credit conditions have become tighter for some households and businesses," but said higher inflation remained its main concern. (Read the Fed statement)

Central bank policymakers also left a key short-term interest rate unchanged and didn't hint at future rate cuts.

Stocks closed Tuesday's session higher as investors appeared to be soothed that the Fed wasn't panicking about the turmoil in the credit market. The Fed also said it expects the U.S. economy to keep growing at a "moderate pace."

In corporate news, shares of Cisco Systems (Charts, Fortune 500) trade higher a day after the computer networking company reported higher-than-expected earnings on a boost in quarterly sales.

A revenue warning from luxury home builder Toll Brothers (Charts) on Wednesday was likely to weigh on investors' minds since it elevated concerns about a deepening crisis in the U.S. housing market.

Elsewhere, Sprint Nextel (Charts, Fortune 500), the No. 3 U.S. wireless service, posted lower quarterly profit on Wednesday but beat analysts' average forecast as it added new subscribers.

McDonald's (Charts, Fortune 500), the world's largest fast-food chain, reported a strong 6.5 percent jump in its global sales in July, helped by the addition of new breakfast menu items.

In overseas trading, European markets moved higher in midday trading while Asian markets also were in positive territory.

Oil prices eased in advance of the weekly U.S. inventory report from the Energy Information Administration. U.S. light crude for September delivery declining 47 cents to $71.95 a barrel in electronic trading.

Treasury prices fell, raising the yield on the benchmark 10-year note to 4.81 percent, up from 4.77 percent late Tuesday. Bond prices and yields move in opposite directions.

The dollar edged higher against the euro and the yen.

The markets opened as scheduled despite disruptions of the New York transportation system due to severe weather.