US open: Stocks rally as Yellen's remarks suggest delay to rate hike

US stocks rallied as Federal Reserve Chair Janet Yellen flagged risks to the economy that could delay another increase in interest rates.

The Dow Jones Industrial Average rose 0.63%, the Nasdaq increased 1.65% and the S&P 500 climbed 1.01% at 1549 GMT.

In prepared remarks for her semiannual testimony to Congress on US monetary policy, Yellen said financial conditions have become less supportive of economic growth, the slowdown in China could weigh further on the US and the outlook for inflation is falling.

Without stating it specifically, her remarks were seen to suggest the next hike to interest rates may be a long way off.

“Financial conditions in the United States have recently become less supportive of growth, with declines in broad measures of equity prices, higher borrowing rates for riskier borrowers, and a further appreciation of the dollar,” Yellen said.

“These developments, if they persist, could weigh on the outlook for economic activity and the labor market, although declines in longer-term interest rates and oil prices provide some offset.”

Meanwhile, oil prices gained with West Texas Intermediate crude futures up 1.7% to $28.44 per barrel and Brent crude up 3.4% to $31.39 per barrel at 1551 GMT.

In company news, SolarCity Corp.'s shares plunged after it said late on Tuesday that it will continue to fall short of its installation goals.

Despite positive earnings due to the success of Star Wars, Disney shares fell on concerns about cable sports network ESPN.