Investing.com - U.S. stocks opened sharply higher on Monday, as news that Lawrence Summers withdrew from the contest to succeed Ben Bernanke as the next chairman of the Federal Reserve boosted risk sentiment.
During early U.S. trade, the Dow Jones Industrial Average gained 0.86%, the S&P 500 index advanced 0.76%, while the Nasdaq Composite index climbed 0.52%.
Investor confidence strengthened after Summers’ pulled out of the race to succeed Ben Bernanke as the next Fed chairman. Summers’ was perceived as being likely to unwind economic stimulus measures more aggressively than his main rival for the post, Janet Yellen.
Investors were also awaiting the outcome of the upcoming Fed policy meeting, which concludes on Wednesday.
Separately, data showed that the Empire State manufacturing index fell to a four-month low of 6.29 in September from a reading of 8.24 in August. Analysts had expected the index to rise to 9.2.
The report added to doubts over whether the Fed will decide to start unwinding its USD85 billion-a-month bond buying program this month.
The retail sector was in focus after Hennes & Mauritz said sales at stores open for at least a year rose 4% on the year in August. At the open of the U.S. trading session, Abercrombie & Fitch gained 0.78% and American Apparel rallied 1.54%.
Elsewhere, KKR & Co. shares jumped 1% as the private equity firm was said to be competing with Abraaj Group to buy a majority stake in Saudi Arabian restaurant business Kudu.
On the downside, Apple shares tumbled 1.15% amid reports the use of fingerprint scanning in the company's new iPhone models could lead more device makers to adopt the authentication method as a successor to passwords.
The news came after recent revelations that the U.S. National Security Agency has intercepted Internet communications and cracked encryption codes on devices including the iPhone.
Other stocks likely to remain in focus included Twitter, after the social media messaging site announced last week it had filed for an initial public offering (IPO).
Across the Atlantic, European stock markets were sharply higher. The EURO STOXX 50 climbed 0.84%, France’s CAC 40 gained 0.86%, Germany's DAX rose 0.79%, while Britain's FTSE 100 advanced 0.81%.
During the Asian trading session, Hong Kong's Hang Seng Index jumped 1.47%, while Japan’s Nikkei 225 Index remained closed for a national holiday.
Also Monday, official data showed that U.S. industrial production rose 0.4% in August, in line with expectations, after a flat reading the previous month.
During early U.S. trade, the Dow Jones Industrial Average gained 0.86%, the S&P 500 index advanced 0.76%, while the Nasdaq Composite index climbed 0.52%.
Investor confidence strengthened after Summers’ pulled out of the race to succeed Ben Bernanke as the next Fed chairman. Summers’ was perceived as being likely to unwind economic stimulus measures more aggressively than his main rival for the post, Janet Yellen.
Investors were also awaiting the outcome of the upcoming Fed policy meeting, which concludes on Wednesday.
Separately, data showed that the Empire State manufacturing index fell to a four-month low of 6.29 in September from a reading of 8.24 in August. Analysts had expected the index to rise to 9.2.
The report added to doubts over whether the Fed will decide to start unwinding its USD85 billion-a-month bond buying program this month.
The retail sector was in focus after Hennes & Mauritz said sales at stores open for at least a year rose 4% on the year in August. At the open of the U.S. trading session, Abercrombie & Fitch gained 0.78% and American Apparel rallied 1.54%.
Elsewhere, KKR & Co. shares jumped 1% as the private equity firm was said to be competing with Abraaj Group to buy a majority stake in Saudi Arabian restaurant business Kudu.
On the downside, Apple shares tumbled 1.15% amid reports the use of fingerprint scanning in the company's new iPhone models could lead more device makers to adopt the authentication method as a successor to passwords.
The news came after recent revelations that the U.S. National Security Agency has intercepted Internet communications and cracked encryption codes on devices including the iPhone.
Other stocks likely to remain in focus included Twitter, after the social media messaging site announced last week it had filed for an initial public offering (IPO).
Across the Atlantic, European stock markets were sharply higher. The EURO STOXX 50 climbed 0.84%, France’s CAC 40 gained 0.86%, Germany's DAX rose 0.79%, while Britain's FTSE 100 advanced 0.81%.
During the Asian trading session, Hong Kong's Hang Seng Index jumped 1.47%, while Japan’s Nikkei 225 Index remained closed for a national holiday.
Also Monday, official data showed that U.S. industrial production rose 0.4% in August, in line with expectations, after a flat reading the previous month.