U.S. stock markets opened strong on Monday, with Dow futures registering a spike of more than 200 points after oil prices rebounded on reports of reduced United States production, boosting market sentiment.
According to Baker Hughes, an industry research group, the number of rigs drilling oil in the U.S. has been falling for 9 consecutive weeks, cutting the number to 413.
Meanwhile, reports of U.S. oil inventory hitting 2.1 million barrels last week brought fears of a domestic supply glut.
Futures for the blue-chip Dow rose 191 points, or 1.16%, by 11:55GMT, while futures for the S&P 500 advanced 23 points, or 1.16%. Futures for the tech-heavy Nasdaq 100 also went up by 53 points, or 1.26%.
Several companies are slated to report earnings later in the day. They include Allergan (NYSE:AGN), Fitbit Inc (NYSE:FIT), Motorola Solutions (NYSE:MSI) and Dean Foods Company (NYSE:DF).
In Europe, stocks soared to a 2-week high as the recovery in oil prices calmed investor nerves following the recent commodity rout.
In Asia, Chinese stocks went up after news broke that authorities were replacing the country’s securities chief.
Meanwhile, gold futures fell by around 2.5%, or $30 as the precious metal lost its appeal after oil prices went up.