Despite of the ongoing concerns over the financial health of Deutsche Bank, US stocks opened higher on Friday, shrugging off a sell-off in overseas markets. A sharp recovery in crude oil price during the past few hours of trading also boosted investor confidence and pushed equities higher.
Friday's rebound came on the back of nearly 1% slide on Thursday led by news report that some of the Deutsche bank's biggest clients, including several big hedge funds, were pulling out funds and moving portion of their listed derivatives holdings to other firms.
At the time of reporting, the Dow Jones Industrial Average jumped over 100 points to 18,250 and the broader S&P 500 index added 11 points to 2,162. Meanwhile, tech-heavy Nasdaq composite index was a slight underperformer and rose 20 point to 5,290.
On the economic data front, US personal spending came-in unchanged in August, while personal income inched higher. The Fed's preferred inflation gauge, Core PCE Price Index, inched up to 1.7% y-o-y but remained comfortably below the Federal Reserve's 2% target. The Chicago PMI for September surpassed expectations and came-in at 54.2 as against 51.5 recorded in August.
In other markets, crude oil managed to erase all of its early losses and has now moved back above $48.00/barrel mark and gold witnessed a tepid recovery on the back of prevalent risk-off environment.
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