US indices rise at open as rally continues

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Wall Street opened higher on Wednesday, continuing a rally that began earlier in the week as traders bet that inflation was less of a threat than once feared.

Investors have been divided for months over whether the US economy's reopening would cause persistent price increases, and a combination of new data and a shift in Federal Reserve sentiment appears to have convinced them inflation will be temporary.

About 15 minutes into trading, the broad-based S&P 500 was up 0.1 percent at 4,249.90. The tech-rich Nasdaq Composite Index added 0.3 percent to 14,290.21, building on Tuesday's record close.

The benchmark Dow Jones Industrial Average was flat at 33,942.77.

"It is back to status quo for the stock market," said Patrick J. O'Hare of Briefing.com, who added traders were reassured after Fed Chair Jerome Powell reiterated Tuesday that higher inflation is a short-term issue.

Stocks have rocketed higher during the Covid-19 pandemic after the Fed pledged it would keep its lending rate lower for longer to achieve maximum employment after the mass layoffs caused by measures to stop the virus.

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