Stocks have shown a substantial move to the upside in morning trading on Monday, largely offsetting the sharp pullback seen last Friday. The major averages have all surged, with the tech-heavy Nasdaq helping lead the way higher.
Currently, the major averages are just off their highs of the session. While the Nasdaq is up 345.70 points or 3.4 percent at 10,667.08, the S&P 500 is up 97.36 points or 2.7 percent at 3,680.43 and the Dow is up 539.21 points or 1.8 percent at 30,174.04.
The early rally extends recent volatility on Wall Street, as stocks showed wild swings to close out the previous week.
Traders may be picking up stocks at reduced levels following the steep drop seen on Friday, which dragged the Nasdaq down to its lowest closing level in over two years.
A pullback by treasury yields has added to the buying interest, with the yield on the benchmark ten-year note falling below 4.0 percent.
The markets have also benefitted from a positive reaction to earnings news from financial giant Bank of America (BAC).
Shares of Bank of America are surging by 5.3 percent after the company reported third quarter results that beat expectations on both the top and bottom lines.
Earnings season will continue to pick up in the coming days, as Goldman Sachs (GS), Johnson & Johnson (JNJ), Netflix (NFLX), Procter & Gamble (PG), IBM Corp. (IBM), Tesla (TSLA), AT&T (T) and American Express (AXP) are among the companies due to report their quarterly results.
On the economic front, the Federal Reserve Bank of New York released a report showing regional manufacturing activity has contracted by more than expected in the month of October.
Networking stocks have moved sharply higher over the course of the morning, resulting in a 3.7 percent spike by the NYSE Arca Networking Index.
Substantial strength has also emerged among retail stocks, as reflected by the 3.7 percent surge by the Dow Jones U.S. Retail Index.
Gold stocks are also turning in a strong performance amid a rebound by the price of the precious metal, with the NYSE Arca Gold Bugs Index jumping by 3.5 percent.
Commercial real estate, computer hardware and telecom stocks are also posting standout gains amid broad based buying interest on Wall Street.
In overseas trading, stock markets across the Asia-Pacific region turned in a mixed performance during trading on Monday. Japan’s Nikkei 225 Index slumped by 1.2 percent, while China’s Shanghai Composite Index rose by 0.4 percent.
Meanwhile, the major European markets have all moved to the upside on the day. While the U.K.’s FTSE 100 Index has jumped by 1.3 percent, the French CAC 40 Index and the German DAX Index are both up by 2.1 percent.
In the bond market, treasuries have pulled back off their early highs but remain in positive territory. As a result, the yield on the benchmark ten-year note, which moves opposite of its price, is down by 4.3 basis points at 3.967 percent.
Business News
U.S. Stocks Extending Wild Ride With Strong Move Back To The Upside
2022-10-17 14:37:44
