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US stocks rise as Germany approves euro rescue fund

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US stocks have followed European markets higher after a German court gave its approval to the eurozone’s permanent crisis fund, opening the door to more aid to embattled Spain.

Facebook shares soared more than seven per cent meanwhile after founder Mark Zuckerberg said the company was focused on making money in the mobile phone side of the market and regretted the stock’s dismal post-IPO performance.

Tech heavyweight Apple lifted the Nasdaq after launching its highly anticipated next-generation smartphone, the iPhone 5.

The Dow Jones Industrial Average on Wednesday edged up 9.99 points (0.07 per cent) to close at 13,333.35.

The S&P 500-stock index rose 3.00 (0.21 per cent) to 1,436.56, while the tech-rich Nasdaq added 9.79 (0.32 per cent) at 3,114.31.

“Undoubtedly, it is a good day for the eurozone and financial markets,” said economist Andreas Rees at Unicredit after the German constitutional court said the new European Stability Mechanism is legal.

“Together with last week’s pledge made by the ECB of buying government bonds to an unlimited extent, an impressive firewall for the eurozone is now building up,” he said.

Apple bounced 1.4 per cent higher, to $US669.79, on the introduction of a slimmer, more powerful version of its iconic iPhone.

Facebook shares rebounded 7.7 per cent to $US20.93, still far below their $US38 May initial public offering price, after Zuckerberg made his first comments on the company’s direction since the IPO, calling Facebook “a mobile company”.

Analysts have expressed worry that Facebook is unable to monetise its presence on mobile phone screens with advertising.

“It is really clear from the stats and my own personal intuition that a lot of energy in the ecosystem is going to mobile, not desktop,” Zuckerberg said in San Francisco.

“That is the future,” he said.

“We are going to be doing killer stuff there.”

Boeing fell 0.4 per cent after European rivals EADS and BAE Systems revealed merger talks.

Troubled Chesapeake Energy shed 1.0 per cent after announcing it would sell $US6.9 billion ($A6.64 billion) in energy assets in Texas and New Mexico to help pay down debt.

AIG was up 1.1 per cent after the US Treasury sold off $US20.7 billion ($A19.93 billion) in shares in the insurer.

Bond prices fell. The yield on the 10-year Treasury climbed to 1.76 per cent from 1.70 per cent Tuesday, while the 30-year yield rose to 2.93 per cent from 2.85 per cent. Bond yields move inversely to prices.