U.S. Stocks Showing Significant Move Back To The Upside
Stocks have moved sharply higher in morning trading on Monday, regaining ground following a dismal September. The major averages have all shown substantial moves to the upside.
Currently, the Dow is up 623.74 points or 2.2 percent at 29,349.25, the Nasdaq is up 168.47 points or 1.6 percent at 10,744.09 and the S&P 500 is up 73.36 points or 2.1 percent at 3,658.98.
The rebound on Wall Street likely reflects bargain hunting, as traders pick up stocks at reduced levels after the major averages slumped to their lowest levels since late 2020 last Friday.
Stocks saw continued strength following the release of a report from the Institute for Supply Management showing activity in the U.S. manufacturing sector slowed by more than expected in the month of September but still saw continued growth.
The ISM said its manufacturing PMI fell to 50.9 in September from 52.8 in August, although a reading above 50 still indicates growth in the sector. Economists had expected the index to edge down to 52.2.
With the bigger than expected decrease, the manufacturing PMI dropped to its lowest level since hitting 43.5 in May 2020.
Networking stocks have shown a substantial move to the upside on the day, driving the NYSE Arca Networking Index up by 5.6 percent.
Considerable strength is also visible among steel stocks, as reflected by the 5.3 percent spike by the NYSE Arca Steel Index.
Energy stocks are also seeing significant strength amid a surge by the price crude oil, moving sharply higher along with airline semiconductor and gold stocks.
In overseas trading, stock markets across the Asia-Pacific region turned in a mixed performance amid light holiday trading. Japan’s Nikkei 225 Index jumped by 1.1 percent, while Hong Kong’s Hang Seng Index slid by 0.8 percent.
Meanwhile, the major European markets have turned higher over the course of the session. While the German DAX Index has advanced by 0.8 percent, the French CAC 40 Index and the U.K.’s FTSE 100 Index are up by 0.5 percent and 0.4 percent, respectively.
In the bond market, treasuries have shown a strong move back to the upside following the pullback seen over the two previous sessions. As a result, the yield on the benchmark ten-year note, which moves opposite of its price, is down by 18.5 basis points at 3.619 percent.
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