U.S. stocks opened higher on Wednesday as hopes of an interest rate cut later this month were boosted by Federal Reserve Chairman Jerome Powell's comment that the central bank would "act as appropriate" to sustain record U.S. growth.

The Dow Jones Industrial Average rose 68.47 points, or 0.26%, at the open to 26,851.96.

The S&P 500 opened higher by 9.67 points, or 0.32%, at 2,989.30. The Nasdaq Composite gained 41.47 points, or 0.51%, to 8,183.20 at the opening bell.