Libya news sends US stocks higher; Nasdaq up 2.1pc
NEW YORK: US stock markets surged on opening Monday after rebels appeared close to victory in Libya, with the Dow gaining 1.7 percent in the first five minutes of trade.
The broader S&P 500 was up 1.8 percent after falling four straight weeks, while the Nasdaq Composite jumped 2.1 percent.
News that Libya's six-month rebellion was on the verge of toppling strongman Moamer Qadhafi, with rebels advancing deep into Tripoli over the weekend, lifted investors' spirits and encouraged the Monday-morning rebound.
"Boosting sentiment this morning are hopes for lower oil prices, as it seems that Moamer Qadhafi's regime is on the verge of collapse," said Sarah Wasserman, an analyst with Schaeffer's Investment Research.
The Dow fell four percent last week amid fears of an economic slowdown in the United States and fallout from Europe's debt crisis.
Investors are also hoping that US Federal Reserve chief Ben Bernanke will unveil new stimulus measures aimed at juicing the stalled US economy in a speech scheduled for later this week.
"Investors are hopeful this Monday morning, with expectations high ahead of Federal Reserve Chairman Ben Bernanke's speech on Friday," Wasserman said.
Copyright AFP (Agence France-Presse), 2011
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