U.S. stocks open higher amid GDP report

NEW YORK, Feb. 28 (Xinhua) -- U.S. stocks opened higher on Wednesday as investors digested the country's newly-released economic growth data.

U.S. real gross domestic product (GDP) increased at an annual rate of 2.5 percent in the fourth quarter of 2017, in line with market consensus, according to the second estimate released by the Commerce Department on Wednesday. In the third quarter, real GDP increased 3.2 percent.

U.S. real GDP increased 2.3 percent in 2017, which primarily reflected positive contributions from personal consumption expenditures, nonresidential fixed investment, and exports, said the department.

Meanwhile, investors were still sifting through the testimony from Federal Reserve Chairman Jerome Powell. Powell said in his first monetary policy testimony on Tuesday that despite the stock market's recent volatility, Fed governors still plan on hiking rates multiple times throughout 2018.

He told lawmakers "gradually reducing monetary policy accommodation will sustain a strong labor market while fostering a return of inflation to two percent."

The new chair signaled the central bank could hike rates more than three times this year should economic and inflation data continue to prove healthy.

Shortly after the opening bell, the Dow Jones Industrial Average rose 106.51 points, or 0.42 percent, to 25,516.54. The S&P 500 increased 10.66 points, or 0.39 percent, to 2,754.94. The Nasdaq Composite Index was up 33.49 points, or 0.46 percent, to 7,363.84.

On Tuesday, U.S. stocks reversed early gains to end sharply lower, with all three major indices dropping over 1 percent, amid Powell's testimony. Enditem