U.S. stocks open higher after Fed chair speech

U.S. stocks opened higher Wednesday, as investors still focused on U.S. Federal Reserve Chair Janet Yellen's cautious stance on interest rate hikes.

"Given the risks to the outlook, I consider it appropriate for the FOMC to proceed cautiously in adjusting policy," Yellen said in a speech to the Economic Club of New York Tuesday.

Some analysts believed the central bank is likely to raise interest rates just once this year and no more than twice next year based on Yellen's dovish remarks.

"She began by admonishing us that Fed guidance is a 'forecast,' not a 'plan,' meaning it is by no means set in stone," said Chris Low, the chief economist at FTN Financial, Wednesday.

Global markets cheered Yellen's speech and bond prices rallied, while the U.S. dollar fell more than one percent.

On the economic front, U.S. private sector employment increased by 200,000 jobs from February to March, on a seasonally adjusted basis, according to the ADP National Employment Report Wednesday.

The ADP figure is watched closely as a pre-indicator for the nonfarm payrolls report due Friday.

Shortly after the opening bell, the Dow Jones Industrial Average gained 111.63 points, or 0.63 percent, to 17,744.74. The S&P 500 rose 10.85 points, or 0.53 percent, to 2,065.86. The Nasdaq Composite Index was up 32.42 points, or 0.67 percent, to 4,879.05. Endi