It’s good news in the US markets as the indices open strong on Tuesday morning trade. Dow Jones Industrial Average started the day with considerable gains at 10,810 and has been moving up since then. Same is the case with S&P 500 and Nasdaq as investor confidence seems to be returning.
S&P 500 index opened at 1,120 at the opening bell and touched highs of 1,152 so far. Even Nasdaq opened 40 odd points higher to show opening ticks of 2,402. Since then, the index has been inching upwards and kissed highs of 2,444 around 80 points higher. The Dow touched 11,052 levels as its high so far in the day and has been constantly trading above the 11,000 mark. Also, Nasdaq has surpassed the 2,400 levels by good margin and is keeping up the pace after yesterdays 6 percentage points fall.
Tuesday seems to have started well for the markets especially following Monday’s bloodbath. The Asian markets had followed US cues in earlier trade by most of them pulled back to reduce huge losses sustained in the day. Even European markets had shown signs of worry in the early hours of trade but they recovered back heavily from their day lows. FTSE 100 is trading around 90 points higher at 5,264 with STOXX 50 trading just marginally higher but in the green territory. The biggest turnaround was DAX which had lost lot of ground earlier but has recovered back to trade slightly lower, 6 odd points to be exact.
The US stock futures had been trading in the positive zone which can be the thing that made a difference. Also, this can be just a short-covering in response to yesterday’s debacle. However, US markets gaining a strong ground in the first few hours of trade is a positive scenario for global markets. What happens next in the day may depend a lot on the announcement of monetary policy from the US Federal which is due later in the day.
The announcement could mark significant moves in Dow, Nasdaq and S&P. So far, the green color certainly looks good and hopefully if it continues, the investor confidence will come back!
