US stock markets surged on opening Monday after rebels appeared close to victory in Libya, with the Dow gaining 1.7 per cent in the first five minutes of trade.
The broader S&P 500 was up 1.8 per cent after falling four straight weeks, while the Nasdaq Composite jumped 2.1 per cent.
News that Libya's six-month rebellion was on the verge of toppling strongman Muammar Gaddafi, with rebels advancing deep into Tripoli over the weekend, lifted investors' spirits and encouraged the Monday-morning rebound.
"Boosting sentiment this morning are hopes for lower oil prices, as it seems that Muammar Gaddafi's regime is on the verge of collapse," said Sarah Wasserman, an analyst with Schaeffer's Investment Research.
The Dow fell four per cent last week amid fears of an economic slowdown in the United States and fallout from Europe's debt crisis.
Investors are also hoping that US Federal Reserve chief 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.
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