Stocks have moved mostly higher during trading on Monday, extending the rally seen to close out the previous week. The major averages have all moved to the upside, although the Dow is posting a relatively modest gain.
Currently, the Nasdaq and the S&P 500 are just off their highs of the session. The Nasdaq is up 102.74 points or 0.6 percent at 16,259.07, the S&P 500 is up 30.49 points or 0.6 percent at 5,158.28 and the Dow is up 100.29 points or 0.3 percent at 38,775.97.
Stocks continue to benefit from the upward momentum seen over the two previous sessions, which partly reflected renewed optimism about the outlook for interest rates.
Relatively dovish comments from Federal Reserve Chair Jerome Powell combined with weaker-than-expected job growth in April have largely eliminated short-lived concerns the Fed might actually consider raising rates.
Investors have instead grown increasingly confident about a rate cut in the coming months, with the chances rates will be lower by September now at 91.2 percent, according to CME Group’s FedWatch Tool.
Overall trading activity remains somewhat subdued, however, as a lack of major U.S. economic data keeps some traders on the sidelines.
The economic calendar remains relatively quiet throughout the week, although a preliminary reading on consumer sentiment in May might attract some attention along with remarks by several Fed officials.
Gold stocks have moved sharply higher on the day, resulting in a 2.2 percent surge by the NYSE Arca Gold Bugs Index.
The rally by gold stocks comes amid an increase by the price of the precious metal, with gold for June delivery climbing $22.80 to $2,331.40 an ounce.
An increase by the price of crude oil is also contributing to considerable strength among oil service stocks, as reflected by the 1.9 percent gain being posted by the Philadelphia Oil Service Index.
Computer hardware stocks have also shown a significant move to the upside, driving the NYSE Arca Computer Hardware Index up by 1.7 percent.
Oil producer, brokerage and semiconductor stocks are also seeing notable strength, moving higher along with most of the other major sectors.
In overseas trading, stock markets across the Asia-Pacific region moved mostly higher during trading on Monday, with markets in Japan and South Korea closed for holidays. China’s Shanghai Composite Index rallied by 1.2 percent, while Hong Kong’s Hang Seng Index climbed by 0.6 percent.
The major European markets have also moved to the upside on the day. While the German DAX Index is up by 0.9 percent, the French CAC 40 Index and the U.K.’s FTSE 100 Index are both up by 0.5 percent.
In the bond market, treasuries have pulled back near the unchanged line after seeing initial strength. As a result, the yield on the benchmark ten-year note, which moves opposite of its price, is up by less than a basis point at 4.506 percent.
Business News
U.S. Stocks Extending Upward Move Seen Late Last Week
2024-05-06 15:01:10
