NEW YORK - US STOCKS opened higher on Wednesday amid market optimism President Barack Obama was moving swiftly to rescue loss-ridden banks and jolt the economy from deep recession.
The Dow Jones Industrial Average climbed 144.01 points (1.76 per cent) at the opening bell for a third consecutive day on positive territory.
The tech-heavy Nasdaq rose 34.29 points (2.28 per cent) to 1,539.19 and the broad-market Standard & Poor's 500 index advanced 19.41 points (2.30 per cent) to 865.12.
Market confidence stemmed from reports that Mr Obama was pushing for a 'bad bank' to isolate toxic assets from the baking system reeling largely from a massive home mortgage meltdown.
The bullish bias 'is rooted in the news that the Obama administration is pushing the idea of a 'bad bank' program whereby the government will help banks get toxic assets off their balance sheets in exchange for capital,' said Patrick O'Hare of Briefing.com.
The 'bad bank' approach 'captures the spirit' of a government financial bailout plan's 'original intent,' he said.
'The initial reaction to it reflects both an exasperation over past approaches for trying to stabilise the financial sector and a hope that this approach is the solution that will get banks lending more freely again.'
The US House of Representatives was also expected to vote on Wednesday on a US$825 billion (S$1.2 trillion) stimulus plan to spur economic activities and reinvigorate the economy. -- AFP
