Stocks have moved mostly higher in morning trading on Monday following the substantial volatility seen over the past few sessions. The major averages have all moved to the upside, although the tech-heavy Nasdaq briefly dipped into negative territory.
Currently, the major averages are just off their highs of the session. The Dow is up 438.19 points or 1.4 percent at 31,700.09, the Nasdaq is up 54.56 points or 0.5 percent at 11,409.18 and the S&P 500 is up 41.82 points or 1.1 percent at 3,943.18.
The strength on Wall Street comes as traders continue to pick up stocks at reduced levels, extending the recovery seen late in the trading session last Friday.
The S&P 500 climbed well off its worst levels to end the day roughly flat after tumbling more than 20 percent from January’s record closing high, which is seen as signaling a bear market.
Buying interest may also have been generated in reaction to news the financial hub of Shanghai has lifted some of its COVID-19 restrictions and U.S. President Joe Biden said he was weighing cutting tariffs on Chinese goods.
“I am considering it. We did not impose any of those tariffs. They were imposed by the last administration and they’re under consideration,” Biden said.
Among individual stocks, shares of VMWare (VMW) are moving sharply higher following reports the cloud computing company is in advanced talks to be acquired by chipmaker Broadcom (AVGO).
Banking stocks have moved substantially higher in morning trading, driving the KBW Bank Index up by 3.6 percent.
Significant strength is also visible among energy stocks, which are moving higher despite a decrease by the price of crude oil. Crude for July delivery is currently sliding $0.66 to $109.62 a barrel.
Reflecting the strength in the energy sector, the Philadelphia Oil Service Index is up by 3.1 percent, the NYSE Arca Oil Index is up by 2.2 percent and the NYSE Arca Natural Gas Index is up by 1.8 percent.
Steel, transportation and computer hardware stocks are also seeing considerable strength, moving higher along with most of the other major sectors.
In overseas trading, stock markets across the Asia-Pacific region turned in a mixed performance during trading on Monday. Japan’s Nikkei 225 Index jumped by 1 percent, while Hong Kong’s Hang Seng Index slumped by 1.2 percent.
Meanwhile, the major European markets have all moved to the upside on the day. While the U.K.’s FTSE 100 Index has surged by 1.4 percent, the German DAX Index is up by 1 percent and the French CAC 40 Index is up by 0.5 percent.
In the bond market, treasuries are giving back ground after trending higher over the past few sessions. As a result, the yield on the benchmark ten-year note, which moves opposite of its price, is up by 4.1 basis points at 2.828 percent.
Source: Read Full Article