U.S. stocks were modestly higher on Monday, as investors cheered news that Osama bin Laden was killed by U.S. forces.
The founder and leader of al Qaeda, Osama bin Laden, was killed by U.S. forces in Abbottabad, north of the Pakistani capital Islamabad.
In an address to the nation Sunday night, President Barack Obama called bin Laden’s death, “the most significant achievement to date in our nation’s effort to defeat al Qaeda.”
“It was such an incredible victory that there is going to be a very, very good mood on Wall Street and throughout the country,” said Jeffrey Sica, president and chief investment officer at SICA Wealth Management.
While the news should boost stocks first thing Monday morning, Sica said Osama bin Laden’s death is not enough to sustain a long rally.
Oil prices were slightly higher, after being down more than 1% earlier in the day. Crude oil was at $114.19 a barrel, up 27 cents.
“Oil can be a globally emotional, reactive market and any time that geopolitical risk is reduced there is less fear in the oil markets,” said Derek Hoffman, chief executive and founder of Wall St. Cheat Sheet. “The news that there was a successful effort to find, capture and kill the number one terrorist in the world is a positive sign.”
Gold prices also backed off their highs Monday. Gold futures for June delivery fell $3.20 to $1,553.20 an ounce, after hitting an intraday high of $1,577.40 an ounce.
On Friday stocks finished their best month this year.