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U.S. stocks open higher as rate hike fears abate

Xinhua, May 20, 2016 Adjust font size:

U.S. stocks opened higher Friday as worries about a summer rate hike appeared to recede after recent stock declines.

Shortly after the opening bell, the Dow Jones Industrial Average rose 53.32 points, or 0.31 percent, to 17,488.72. The S&P 500 added 8.41 points, or 0.41 percent, to 2,048.45. The Nasdaq Composite Index gained 24.12 points, or 0.51 percent, to 4,736.65.

Investors tried to shake off worries that the possibility of a June rate hike becomes higher after the release of the Federal Reserve's hawkish minutes from its April meeting. Overseas stock markets also rebounded broadly.

In corporate news, shares of Gap rose about 1 percent in early trading Friday after the company posted quarterly results generally in line with market estimates. The San Francisco-based retailer also announced that it will shut 75 stores outside the United States.

According to the Fed's minutes, one factor in whether a June rate hike happens is how upcoming economic data turns out.

"Yesterday's unexpected weakness in the Philly Fed index followed an unexpected drop in the NY Fed's Empire manufacturing Survey, suggesting this year's spring bounce may not be as strong as 2015's. It's one more reason to think the Fed's confidence in the economy may be overblown," said Chris Low, chief economist at FTN Financial. Endi