US stocks trending higher during opening hour of trade

Haresh Menghani FXStreet

Major US equity indices opened higher on Thursday as investors took cues from easing geopolitical risks and look forward to the upcoming corporate earnings.

Geopolitical headwind quickly faded after President Donald Trump tweeted that a military response against Syria, in response to a suspected chemical-weapons attack over the weekend, may not be imminent.

Trump appeared to backtrack a day after his comments suggested an immediate military strike and boosted investors' appetite for riskier assets - like equities.

On the economic data front, the weekly initial weekly jobless claims fell at a slightly slower pace than expected during the first week of April, returning closer to the lowest levels since the early 1970s, but did little to provide any fresh impetus.

Against the backdrop of persistent global trade war fears, any further escalation in the war of words between the US and Russia would dent sentiment around risk-sensitive assets and could trigger a more meaningful sell-off in the market.

During the opening hour of trade, the Dow Jones Industrial Average jumped around 285-points to 24,475 and the broader S&P 500 Index climbed nearly 25-points to 2,665. Meanwhile, tech-heavy Nasdaq Composite Index added over 60-points and moved further beyond the 7,100 round figure 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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