MILAN – The S&P 500 and the Nasdaq opened higher on Wednesday after strong quarterly showing from heavyweights Alphabet and Amazon, while investors counted on more fiscal stimulus to aid an economic recovery.

The Dow Jones Industrial Average rose 2.2 points, or 0.01 percent, at the open to 30689.65. The S&P 500 rose 14.0 points, or 0.36 percent, at the open to 3840.27, while the Nasdaq Composite rose 105.5 points, or 0.78 percent, to 13718.314 at the opening bell.

The MSCI world equity index was up 0.3 percent by 0852 GMT, inching closer to its record peak following gains in Asia overnight and a positive open in Europe.

World shares recovered from wild swings last week when a Reddit-driven trading fever boosted heavily shorted stocks like GameStop, forcing hedge funds to reduce their equity books.

Investors were bracing for tougher US markets regulation after Treasury Secretary Janet Yellen asked to discuss whether trade had been consistent with fair and efficient markets. Officials were set to meet as soon as Thursday

“Regulators have acknowledged the tumult,” noted Deutsche Bank strategists led by Jim Reid in a note.

Gamestop’s Frankfurt-listed shares fell 45 percent in morning trade in Europe.

Markets also cheered to renewed hopes for US President Joe Biden’s proposed US$1.9 trillion COVID-19 aid bill after the Senate took steps to allow Democrats to pass Biden’s package without Republican support.

Well-received earnings updates from tech giants Alphabet and Amazon.com also bolstered sentiment.

Nasdaq and S&P 500 futures were up 0.8 and 0.4 percent respectively.

On bond markets, Italy’s borrowing costs fell sharply on expectations former European Central Bank chief Mario Draghi could become the country’s next prime minister, ending a political crisis.

Italy’s 10-year bond yield fell as much as 8 basis points to around 0.58 percent, its lowest in almost two weeks. It was set for its biggest one-day fall since mid-January.

The gap between Italian and German 10-year bond yields narrowed to 105.9 bps from 113 bps late on Tuesday 

“While significant policy initiatives seem unlikely, markets will probably view Draghi as a positive appointment,” said Paul Donovan, chief economist at UBS Global Wealth Management.

Elsewhere, spot silver, which briefly surged on Monday as small traders bought up the metal, rose 0.7 percent to US$26.8 an ounce. That was a minor rebound from an 8 percent tumble on Tuesday, and analysts say the retail trader-driven rally to a near eight-year peak in the previous session has faded.

Spot gold fell 0.1 percent to US$1,835.5 per ounce.

Oil prices continued their upswing, supported by an unexpected draw in US crude stockpiles and a producer estimate of a global oil market deficit this year.

Brent crude futures hit an 11-month high and were last up 0.7 percent at US$57.86 a barrel, while US crude futures climbed 0.5 percent to US$55.06 a barrel, just shy of a one-year high.

In foreign exchange markets, the dollar traded near a two-month high against the euro as investors bet that the US economy will recover from the coronavirus shock faster than the euro zone.