Wall Street opens higher as risk flows return on coronavirus optimism

• Dr Fauci says they are preparing plans to ease back into normal activity.
• CBOE Volatility Index drops more than 4% on Wednesday.
• Energy shares post decisive gains ahead of weekly EIA data.

Wall Street's main indexes started the day higher on Wednesday after failing to cling to early gains on Tuesday. As of writing, the Dow Jones Industrial Average was up 1.12% on the day while the Nasdaq Composite and the S%P 500 were adding 1.3% and 1%, respectively.

Risk perception

Improving market sentiment on renewed coronavirus optimism seems to be providing a boost to risk-sensitive stock indexes. At the moment, the CBOE Volatility Index, Wall Street's fear gauge, is down more than 4%.

Earlier in the day, Dr Anthony Fauci, director of the US National Institute of Allergy and Infectious Diseases, said they were preparing plans to ease back into normal activity if coronavirus mitigation efforts were successful. Additionally, Treasury Secretary Mnuchin reassures that they will not run out of money to support small businesses.

Among the 11 major S&P 500 sectors, the Energy Index is up 3.2% on the day as the best-performer ahead of the EIA's Weekly Petroleum Status Report. Meanwhile, the risk-sensitive Technology Index is adding 1.5%.