Nasdaq Remains Sharply Higher After Early Rally, Dow And S&P 500 Posting Strong Gains

Stocks remain mostly positive in mid-day trading on Tuesday after an early move to the upside. The tech-heavy Nasdaq has shown a particularly strong upward move after ending the previous session sharply lower.

Currently, the major averages are hovering firmly in positive territory. The Nasdaq is up 432.06 points or 3.4 percent at 13,041.22, while the S&P 500 is up 70.65 points or 1.9 percent at 3,892.00 and the Dow is up 287.04 points or 0.9 percent at 32,089.48.

The rebound by the Nasdaq comes as technology stocks are seeing significant strength amid a pullback by treasury yields.

The yield on the benchmark ten-year note has shown a notable move to the downside after ending the previous session at its highest closing level in over a year.

Tech stocks pulled back sharply in reaction to the jump in bond yields seen on Monday, with the Nasdaq tumbling to a nearly three-month closing low.

The subsequent pullback shown by yields has inspired traders to pick up tech stocks at reduced levels despite lingering concerns about inflation and the outlook for interest rates.

Electric car maker Tesla (TSLA) is showing a significant rebound after closing lower for five straight sessions, while tech giants Facebook (FB), Apple (AAPL) and Amazon (AMZN) are also posting strong gains.

Semiconductor stocks continue to turn in some of the market’s best performances, with the Philadelphia Semiconductor Index spiking by 4.9 percent after ending the previous session at its lowest closing level in over two months.

Software, computer hardware and networking stocks are also seeing considerable strength, contributing to the rally by the tech-heavy Nasdaq.

Outside of the tech sector, gold stocks are also seeing significant strength on the day, resulting in a 2.3 percent jump by the NYSE Arca Gold Bugs Index.

The rally by gold stocks comes amid a sharp increase by the price of the precious metal, with gold for April delivery soaring $35.90 to $1,713.90 an ounce.

Retail, brokerage and healthcare stocks are also seeing notable strength on the day, 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 Tuesday. Japan’s Nikkei 225 Index jumped by 1 percent, while China’s Shanghai Composite Index tumbled by 1.8 percent.

Meanwhile, the major European markets all moved to the upside on the day. While the U.K.’s FTSE 100 Index edged up by 0.2 percent, the French CAC 40 Index and the German DAX Index both rose by 0.4 percent.

In the bond market, treasuries have pulled back off their best levels of the day but remain firmly positive. Subsequently, the yield on the benchmark ten-year note, which moves opposite of its price, is down by 4.2 basis points at 1.554 percent.