US Stocks Open Higher as Oil Rebounds

US Stocks Open Higher as Oil Rebounds

10 May 2016, 16:41
Roberto Jacobs

US Stocks Open Higher as Oil Rebounds

A wave of global risk-on sentiment sent US stocks higher on Tuesday for a third straight session. Most major US indices opening with gains of anywhere between 0.3% to 0.8%.

The S&P 500 added over 0.7% or 15 point to open at 2,075 while the Dow Jones Industrial Average added around 150 points or 0.8% to open above 17,850 level. Meanwhile, tech heavy Nasdaq Composite index remained a relative underperformer, advancing 22 points or 0.45% at 4,770.

On economic data front, the Labor Department's JOLT job openings for March showed the number of job openings increased to 5.757 million from a revised 5.608 million in February (initially reported at 5.445 million). Meanwhile, the NFIB Small Business Index for April snapped a three-month losing streak and inched higher to 93.6 from 92.6 in March and was better-than 93.2 expected.

Economic data boosted sentiment

Tuesday's up-move could largely be attributed to a sharp recovery witnessed in crude oil prices. Global markets also cheered Japanese finance ministers comments on Forex intervention against a sharp appreciation in the Yen.

Global markets gain

In other markets European stocks trimmed gains but still held their neck in positive territory with major indices gains ranging from 0.1% to 0.5%. Asian markets also close higher led by a strong rally in the Japanese benchmark indices, Nikkei 225, which ended up with a gain of over 2% after tough talk on yen appreciation.

Although the overall market sentiment is still pessimistic, some investors might consider this as an opportunity to take some profits off the table.


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