Stocks moved sharply higher over the course of the trading session on Monday, extending the strong upward move seen in the previous session.
The major averages all ended the day firmly in positive territory. The Dow soared 320.11 points or 1.3 percent to 24,776.59, the Nasdaq advanced 67.81 points or 0.9 percent to 7,756.20 and the S&P 500 climbed 24.35 points or 0.9 percent to 2,784.17.
Buying interest was generated in reaction to strength in the overseas markets, as traders shrugged off recent concerns about a global trade war.
Traders also continued to react positively to last Friday’s Labor Department report showing stronger than expected job growth in the month of June.
A light day on the U.S. economic front kept trading activity somewhat subdued, however, with traders looking ahead to the release of reports on producer and consumer price inflation in the coming days.
Banking stocks showed a substantial move to the upside as the trading day progressed, driving the KBW Bank Index up by 2.6 percent.
Significant strength was also visible among oil service stocks, as reflected by the 2.5 percent jump by the Philadelphia Oil Service Index.
The rally by oil service stocks came amid a modest increase by the price of crude oil, with crude for August delivery inching up $0.05 to $73.85 a barrel.
Transportation, brokerage, steel, and computer hardware stocks also moved notably higher, reflecting broad based buying interest on Wall Street.
On the other hand, utilities stocks showed a considerable move to the downside on the day, dragging the Dow Jones Utilities Average down by 3.1 percent.
In overseas trading, stock markets across the Asia-Pacific region moved significantly higher during trading on Monday. Japan’s Nikkei 225 Index surged up by 1.2 percent, while China’s Shanghai Composite Index spiked by 2.5 percent.
European stocks also moved mostly higher on the day. While the U.K.’s FTSE 100 Index advanced by 0.9 percent, the French CAC 40 Index and the German DAX Index both climbed by 0.4 percent.
In the bond market, treasuries moved to the downside amid the continued strength on Wall Street. As a result, the yield on the benchmark ten-year note, which moves opposite of its price, rose by 2.9 basis points to 2.860 percent.
The U.S. economic calendar remains relatively quiet on Tuesday, although trading may be impacted by reaction to President Donald Trump’s announcement of his Supreme Court nominee.
by RTTNews Staff Writer
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