Merck & Co Inc gained 1.8% after a panel of advisers to the U.S. Food and Drug Administration narrowly voted to recommend the agency authorize the drugmaker's antiviral pill to treat COVID-19. All of the 11 major S&P sectors advanced in early trading, with energy, materials and financials leading the gains.
Banks added 2.3%, recouping losses suffered in the previous session. U.S. stocks slumped on Tuesday after Federal Reserve Chair Jerome Powell in his testimony before the Senate Banking Committee indicated that he no longer considers inflation as "transitory".
Investors were also awaiting a Fed report, known as the "Beige Book", on current economic conditions to provide further insight into the central bank's stance on inflation. The report is due at 2:00 p.m. ET (1900 GMT).
Powell's seemingly hawkish comments on Tuesday served as a double whammy for markets, which were already nervous about the spread of the Omicron variant and its potential to hinder a global economic recovery.
At 10:06 a.m. ET, the Dow Jones Industrial Average was up 327.06 points, or 0.95%, at 34,810.78.
Meanwhile, separate data showed U.S. private employers maintained a strong pace of hiring in November, while manufacturing activity picked up amid strong demand for goods.
Salesforce.com Inc forecast current-quarter profit below estimates as it faces stiff competition from rivals including Microsoft, sending its shares down 6.7%.
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