US markets boosted by hope of end to Libyan conflict

AFP - US stocks opened strongly higher on Monday following news that the regime of Libyan strongman Moamer Kadhafi was on the brink of defeat, after rebels advanced deep into Tripoli.
              
The Dow Jones Industrial Average gained 148.18 points (1.4 percent) to stand at 10,965.83 after the first half-hour of trading.
              
The broader S&P 500 rose 14.59 points (1.3 percent) to 1,138.12, while the tech-heavy Nasdaq Composite climbed 34.86 points (1.5 percent) to 2,376.70.
              
The news from Libya lifted investors' spirits and fuelled the rebound after US stock markets fell for four consecutive weeks amid fears of an economic slowdown in the United States and fallout from Europe's debt crisis.
              
The Dow fell four percent last week amid a barrage of negative news on the global economic outlook.
              
"Boosting sentiment this morning are hopes for lower oil prices, as it seems that Moamer Kadhafi's regime is on the verge of collapse," said Sarah Wasserman, an analyst with Schaeffer's Investment Research.
              
Investors are also hoping that US Federal Reserve Chairman Ben Bernanke will unveil new stimulus measures aimed at juicing the stalled US economy in a speech scheduled for later this week.
              
"Investors are hopeful this Monday morning, with expectations high ahead of Federal Reserve Chairman Ben Bernanke's speech on Friday," Wasserman said.
              
Industrials posted some of the strongest gains, with aluminum giant Alcoa rallying 3.6 percent, construction-equipment maker Caterpillar climbing 2.2 percent and aircraft builder Boeing up 3.0 percent in early trade.
              
Energy companies posted more muted gains, as the prospect of renewed Libyan production threatened to push down oil prices. Chevron was up 1.3 percent and ExxonMobil was up 1.6 percent.
              
Shares of Marathon, a Houston-based oil company that had major operations in Libya before the rebellion broke out, jumped 2.3 percent.
              
Bond prices fell. The yield on the 10-year Treasury note climbed to 2.12 percent from 2.07 percent late Friday, while that on the 30-year bond rose to 3.43 percent from 3.39 percent.
              
Bond prices and yields move in opposite directions.