US equities move higher as tech stocks rebound
• Technology stocks recover part of previous session’s selloff.
• Tax bill optimism continues to support bullish sentiment.
Major US equity indices witnessed a rather lacklustre opening on Tuesday, with the Dow Jones Industrial Average (DJIA) struggling to gain traction and Nasdaq staging a goodish recovery after overnight sell-off.
On Monday, tech-heavy Nasdaq Composite Index fell over 1% and analyst attributed the slide to profit taking, especially after scoring big gains this year. A selloff in technology stocks partly offset the latest optimism over the progress on a long-awaited US tax overhaul legislation and was seen weighing on the broader indices.
Meanwhile, investors now seemed to have started raising questions over the possible impact on the already stronger US economy but seemed ready to give reforms the benefit of doubt, at least for the time being.
During the opening hour of trade, DJIA added around 20-points and the broader S&P 500 Index treaded water near yesterday's closing level. Meanwhile, Nasdaq jumped around 35-points and moved back above the 6,800 mark.
Author
Haresh Menghani
FXStreet
Haresh Menghani is a detail-oriented professional with 10+ years of extensive experience in analysing the global financial markets.
