Major US equity indices build on Friday’s strong up-move
Major US equity indices build on Friday’s strong up-move and opened with modest gains, reversing all of its last week’s losses led by political headlines from the US.
News reports that the US President Donald Trump asked then-FBI Director James Comey to stop an investigation of former National Security adviser Mike Flynn triggered a sharp mid-week sell-off in the US stocks as it raised doubts over Trump’s ability to push through pro-growth economic policies, which is required to justify the recent rally to record high levels.
Fed speaks in focus
With focus shifting away from domestic controversies, in wake of Trump’s first foreign trip, optimism surrounding OPEC-led production cut deal continues to boost oil prices and was seen supporting investors’ appetite for riskier-assets – like equities.
At the time of writing, the Dow Jones Industrial Average gained over 100-points and moved back above 20,900 mark, while the broader S&P 500 Index added around 10-points to 2,392.
Meanwhile, tech-heavy Nasdaq Composite Index climbed 30-points and was seen building on to its gains back above the 6,100 round figure mark.
In absence of any major market moving economic releases from the US, investors on Monday will remain focused on speeches from several FOMC members that include – Philadelphia Fed President Patrick Harker, Minneapolis Fed President Neel Kashkari, Fed Gov. Lael Brainard and Chicago Fed President Charles Evans.
• US: Fed speak will be the predominant driver for risk sentiment – TDS