US stocks rebound after overnight N. Korean tensions-led fall

Haresh Menghani FXStreet

Major US equity indices witnessed a strong opening on Tuesday and reversed majority of previous session’s losses led by renewed North Korea's threats.

Traders will now take cues from today's US economic releases - Consumer Confidence Index and New Home Sales data, due for release in a short while from now.

The key focus, however, would remain on a key speech by the Fed Chair Janet Yellen. This coupled with comments by various other FOMC members - the Cleveland Fed President Loretta Mester, Fed Governor Lael Brainard and Atlanta Fed President Raphael Bostic, would also be looked upon for fresh insight over the Fed's near-term monetary policy outlook and provide some fresh impetus.

It, however, remains to be seen if the early up-move is sustainable amid escalating geopolitical tensions over the Korean peninsula, which tends to drive flows away from riskier assets - like equities.

During the opening hour of trade, the Dow Jones Industrial Average added around 60-points to 22,351, while the broader S&P 500 Index gained nearly 6-points to 2,502. Meanwhile, tech-heavy Nasdaq Composite Index climbed over 30-points and move back above 6,400 mark.

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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