U.S. stocks open higher on Yellen speech, GDP data

In a speech late Thursday, Fed Chair Janet Yellen, who spoke a week after the Fed delayed a long-anticipated rate hike, said she and other Fed policymakers do not expect recent global economic and financial market developments to significantly affect the central bank’s policy.

World equity markets and the dollar advanced on Friday to end a rocky week on an upbeat note after Federal Reserve Chair Janet Yellen said the Fed was on track to raise interest rates this year, and as USA economic growth was revised upward again.

Nike was the biggest gainer in the S&P 500 after its earnings surpassed expectations.

The Dow Jones Industrial Average rose 174.91 points, or 1.08 per cent, to 16,376.23. The Nasdaq Composite Index was up 18.79 points, or 0.40 percent, to 4,753.27.

Economic reports on Friday had the US economy growing more than expected in the second quarter, up 3.9 percent at an annualized rate. The strength came from gains in consumer spending, business investment and residential construction.

Euro zone inflation and U.S.jobs data will offer clues to the health of major developed economies in the coming week while the malaise gripping emerging markets is expected to prompt India to cut interest rates.

“They took an unsettled situation and they just threw kerosene on that fire through all of their statements”, RBC’s chief USA market strategist told CNBC’s “Squawk Box.”

Large banks gained, including Dow member JPMorgan Chase (+2.1 percent), Citigroup (+2.9 percent) and Wells Fargo (+1.8 percent).

Analysts said the market remains edgy owing to concerns about global growth and uncertainty about United States monetary policy.

Speaking at the University of Massachusetts-Amherst on Thursday evening, Yellen said conditions in the economy will likely be appropriate for the Fed to raise the target range on its benchmark Federal Funds Rate at a few point in 2015.

EUR/USD likely gained support at 1.1088, the low from September 4 and was met with resistance at 1.1625, the high from August 25.

The dollar index was last up 0.26 percent at 96.245.

The CBOE Volatility Index, often referred to as Wall Street’s fear gauge, rose 0.64 percent to end at 23.62 Friday.

In the meantime, to the Dollars 1,146.15, an ounce by 0343GMT, the gold spit recorded a fall of 0.7 percent.