S&P 500 opens higher supported by rising energy stocks

• Wall Street’s main indexes opened in the positive territory.
• CBOE Volatility Index is down more than 2% on stimulus hopes.
• S&P 500 Energy Index is up 1% as the best-performing major sector.

Major equity indexes in the US opened higher as the upbeat macroeconomic data releases from the US and renewed hopes for a deal on the stimulus aid provided a boost to sentiment. Reflecting the risk-on market environment, the CBOE Volatility Index, Wall Street’s fear gauge, is down 2% on the day.

As of writing, the S&P 500 was up 0.58% at 3,353, the Dow Jones Industrial Average was gaining 0.88% at 27,685 and the Nasdaq Composite was rising 0.4% at 11,366.

Earlier in the day, the data published by the Automatic Data Processing (ADP) Research Institue showed that employment in the US’ private sector increased by 749,000 in September, compared to analysts’ estimate of 650,000. Additionally, the US Bureau of Economic Analysis in its final estimate revised the second-quarter GDP contraction to 31.4% from 31.7%.

Meanwhile, US Treasury Secretary Steven Mnuchin said on Wednesday that he is hopeful that Republicans and Democrats can reach a deal on the coronavirus stimulus aid.

Among the 11 major S&P 500 sectors, the Energy Index is up 1% on the day as the best performer in the early trade.

S&P 500 chart (daily)