Stocks shrug off rout
U.S. stocks open higher as investors seek bargains after Tuesday's 280-point drop, look for Fed rate cut.
NEW YORK (CNNMoney.com) -- U.S. stocks rose sharply at Wednesday's open as investors regained their composure a day after the Dow Jones industrial average fell 280 points on renewed economic fears.
The Dow industrials, The Nasdaq composite index and the Standard & Poor's 500 index rose in early trading.
The calm start follows Tuesday's big selloff, when another weak housing report, coupled with a big drop in consumer confidence and worries expressed at the Federal Reserve's last meeting, sparked a 280 point-drop in the Dow.
Investors will get a break Wednesday from the deluge of economic data, with the government's weekly report on crude inventories the only major release on tap.
Oil prices rose 67 cents to $72.40 a barrel in electronic trading.