US stocks open higher after selloff

New York, Aug 26 (IANS) US stocks opened higher on Wednesday as investors bought the dip after a six-day sharp decline.

Traders remained cautious after unexpected reversal on Tuesday, when US stocks pared early rebound in the final section of the trading and extended the drop.

More than 2 trillion dollars’ market value has been erased after the 6-day losing streak of S&P 500.

The recent heavy selloff was sparked by the expectations for the Federal Reserve to increase interest rates as soon as September and global growth concerns.

The upbeat economic data renewed investors’ expectation for an interest-rate hike. US sales of new single-family houses in July were at a seasonally-adjusted annual rate of 507,000, said the Commerce Department Tuesday.

US consumer confidence for August came in at 101.5, up from 91.0 in July, according to the New York-based research group Conference Board on Tuesday.

In company news, Schlumberger, the world’ s largest oilfield-services provider, agreed to buy Cameron International Corp. for 14.8 billion US dollars.

Shortly after the opening bell, the Dow Jones Industrial Average gained 403 points (2.58 percent), to 16,070.38. The S&P 500 added 43.37 points (2.32 percent), to 1,910.98. The Nasdaq Composite Index was up 131.75 points (2.92 percent), to 4,638.24.

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