Major US equity indices opened higher on Friday, with the blue-chip Dow Jones Industrial Average (DJIA) aiming to snap eight consecutive days of losing streak.
In absence of any significant developments in the US-China trade rhetoric, surging crude oil prices boosted energy stocks and was seen supportive of the early positive trading sentiment. OPEC members and other key oil producers gathered in Vienna to discuss the future of an output-cut pact that has been in place since January 2017.
According to the official announcement, the cartel and its allies agreed to increase output, which would result in the real rise in production by 600k barrels per day. The figure came as a relief to bullish traders who were looking for a more aggressive increase and triggered a sharp rally in oil prices.
Meanwhile, tech-heavy Nasdaq Composite Index underperformed the broader markets and reversed early gains to turn lower for the day. A sharp fall in shares of Red Hat, following a weaker than expected quarterly outlook, was seen weighing on the technology sector.
Nevertheless, all the three major indices remain on track for weekly declines of anywhere between 0.5% and 1.5%, primarily on the back of intensifying trade-related worries.
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