You are here

US: Tech, insurers lead Wall Street rally as Irma, N Korea fears ease

[NEW YORK] Wall Street was sharply higher on Monday morning in a broad rally led by technology and financial stocks, especially insurers, on relief that Irma weakened to a tropical storm and North Korea did not conduct a nuclear test as feared.

Irma pounded heavily populated areas of central Florida over the weekend, but gradually lost strength and was downgraded to a tropical storm in the morning.

At 9:37 am ET (1337 GMT), the Dow Jones Industrial Average was up 172.84 points, or 0.79 per cent, at 21,970.63 and the S&P 500 was up 17.64 points, or 0.72 per cent, at 2,479.07.

The Nasdaq Composite was up 63.32 points, or 1 per cent, at 6,423.51.

Also boosting risk appetite was North Korea holding a massive celebration on it founding day on Saturday, instead of another long-range missile launch as the United States and its allies were bracing for.

Your feedback is important to us

Tell us what you think. Email us at btuserfeedback@sph.com.sg

With the tensions easing, world stocks climbed to a record high, while the dollar edged higher and gold retreated from Friday's 13-month high. "For now, we're seeing a bit of a relief rally. It does appear that the worst-case scenario for Florida has been evaded," said Peter Cardillo, chief market economist at First Standard Financial in New York.

REUTERS

BT is now on Telegram!

For daily updates on weekdays and specially selected content for the weekend. Subscribe to t.me/BizTimes