Stocks set to open higher
Futures point to positive start for Wall Street after yields on shorter-dated Treasurys finally start to rise; credit concerns linger.
LONDON (CNNMoney.com) -- U.S. stocks are likely to open higher Wednesday after improved sentiment helped stem a massive flight to quality and yields on shorter-dated Treasurys rebounded.
At 4:31 a.m. ET, Nasdaq and S&P futures were higher, with a comparison to fair value pointing to a solid start for Wall Street.
Investors were comforted Tuesday after Fed Chairman Ben Bernanke, Senator Christopher Dodd and Treasury Secretary Hank Paulson met on Capitol Hill to discuss the recent turmoil in financial markets.
The meeting, which fueled expectations for a Fed rate cut, helped stabilize money markets. Three-month Treasury bills sold off, raising their yield. Earlier in the week, a flight to quality sparked a rally that resulted in the 3-month T-bill yield posting its biggest drop since the stock market crash of 1987.
In major corporate news, online brokers TD Ameritrade (Charts) and E*Trade Financial (Charts) are holding merger talks, according to the Wall Street Journal. The newspaper said the two companies have been in talks for weeks but aren't close to a deal.