US stocks move higher on surging oil prices, Nasdaq underperforms

Haresh Menghani FXStreet

Major US equity indices witnessed a mixed opening on Tuesday, with tech-heavy Nasdaq Composite Index underperforming and trading with a mildly negative bias.

Surging oil prices helped the broader markets to build on the recent gains on a holiday-shortened session. The already bullish oil markets got an additional boost after Libya declared force majeure on significant amounts of its oil supply.

In fact, WTI crude oil jumped above the $75.00/barrel mark for the first time since 2014 and energy stocks were among the biggest beneficiaries of rising oil prices, which eventually supported the positive momentum during the opening hour of trade on Tuesday.

However, uncertainty over trade policies remains a key overhang on the markets as investors remain wary ahead of a July 6 deadline when the US is set to impose fresh tariffs of up to $50 billion on Chinese products.

Nevertheless, the blue-chip Dow Jones Industrial Average and the broader S&P 500 Index remain on track to post a fourth straight session on gains ahead of the Fourth of July holiday on Wednesday.

Author

Haresh Menghani

FXStreet

Haresh Menghani is a detail-oriented professional with 10+ years of extensive experience in analysing the global financial markets.

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