US stocks were higher in early afternoon trading yesterday, helped by a bounce in energy stocks, but gains were limited due to worries over tensions on the Korean peninsula and the potential US landfall of Hurricane Irma.
Exxon and Chevron rose about two per cent, providing the biggest boost to the S&P, while a 2.3 per cent rise in Home Depot shares propelled the Dow.
"What we see is the market correcting back from some of the reaction yesterday," said Lisa Erickson, head of traditional investments at US Bank Wealth Management in Helena, Montana.
The S&P posted its biggest one-day loss in about three weeks on Tuesday after North Korea conducted its most powerful nuclear test yet on Sunday, which triggered a dramatic escalation of the country's stand-off with the US.
“In general, we continue to get a positive momentum on the economic side. While North Korea is still a wild card for certain, on the central bank front, both the ECB and the Fed are looking a little bit more dovish,” Ms Erickson said.
Three Federal Reserve policymakers expressed doubts about further rate hikes on Tuesday, with one influential policymaker calling for a delay in raising US interest rates until the central bank was confident of a rebound in inflation.
Investors will focus on the Fed's Beige Book, a round-up of anecdotes on the economy’s health
Investors will focus on the Fed's Beige Book, a round-up of anecdotes on the health of the economy, that will be issued later in the day.
Also weighing on the sentiment is Hurricane Irma, which is en route to a possible Florida landfall at the weekend and comes just days after Tropical Storm Harvey wreaked havoc in Texas and Louisiana.
At 12.29pm ET (16:29 GMT), the Dow Jones Industrial Average was up 60.12 points, or 0.28 per cent, at 21,813.43 and the S&P 500 was up 6.06 points, or 0.25 per cent, at 2,463.91. The Nasdaq Composite was up 6.99 points, or 0.11 per cent, at 6,382.56.
Six of the 11 major S&P indexes were higher. The energy index's 1.6 per cent rise topped the gainers, putting it on track for its best day in more than two months.
Oil prices gained as strong global refining margins and the reopening of U.S. Gulf Coast refineries provided a more bullish outlook after sharp drops due to Storm Harvey.
Fed Vice Chair Stanley Fischer, a veteran central banker who helped set the course for modern monetary policy, said yesterday he would step down mid October. His early departure gives President Donald Trump an earlier opportunity to further shape the central bank.
United Continental fell 1.44 per cent after it warned Hurricane Harvey and North Korea tensions would hurt its third quarter.
Newell Brands was off about four per cent after the Sharpie maker slashed its profit outlook for 2017.
Advancing issues outnumbered decliners on the NYSE by 1,650 to 1,123. On the Nasdaq, 1,443 issues rose and 1,359 fell.