US open: Stocks open higher as February rally carries on

Wall Street stocks were in the green at the open on Tuesday as major indices look set to raise their record highs even further.

As of 1530 GMT, the Dow Jones Industrial Average was up 0.32% at 31,559.20, while the S&P 500 was 0.22% firmer at 3,943.60 and the Nasdaq Composite started out the session 0.33% stronger at 14,141.31.

The Dow opened 100.80 points higher on Tuesday after traders took a break on Monday in observance of George Washington's Birthday.

In focus on Tuesday, the Cboe Volatility Index, considered to be the Street's best fear gauge, fell to 19.97 on Friday, the first breach of the 20-point threshold since the Covid-19 pandemic began in 2020, a move seen by some as a big "risk on" signal, one which could potentially trigger buying from algorithmic traders.

Stimulus expectations and the rollout of Covid-19 vaccines across the nation were also in focus.

IG's Chris Beauchamp said: "The return of US markets from their long weekend means that the focus for all investors will be on the Biden admin's push for a big stimulus programme.

"US markets return to business with the S&P 500 targeting 4000 and the Nasdaq 100 contemplating a move on 14,000. Earnings season has provided proof of an earlier than expected rebound in corporate performance, and with fresh stimulus money likely to wing its way to the American population there is reason to expect further quarterly growth. Despite all the naysayers, global stock markets, led by the US, continue to make headway, and seem well-set to continue doing so."

On the macro front, manufacturing activity in the state of New York expanded at a quicker month-on-month pace in February, snapping a four-month decline, according to the Federal Reserve Bank of New York. The Empire State Manufacturing Survey's general business conditions index increased to 12.1 in February, up from 3.5 in January to the highest level since September and well ahead of estimates for a print of 5.9.

Still to come, data on December's foreign bond investments was slated for release at 2100 GMT.

In the corporate space, CVS Health beat on both profit and revenue expectations, partly due to having administered more than 3.0m Covid-19 vaccinations, while restaurant chain Dennys will report after the close.