WASHINGTON (dpa-AFX) - Stocks have moved sharply higher during trading on Monday, regaining ground following the sell-off seen last Friday. The major averages have all shown strong moves to the upside, climbing back within striking distance of last week's three-month highs.
Currently, the major averages are just off their highs of the session. The Nasdaq is up 304.30 points or 1.6 percent at 19,711.12, the S&P 500 is up 65.00 points or 1.1 percent at 6,041.97 and the Dow is up 394.09 points or 0.9 percent at 42,591.88.
The rally on Wall Street comes as traders look to pick up stocks at somewhat reduced levels following the previous session's nosedive, which came after Israel launched a series of airstrikes against Iran.
While the clash between Israel and Iran continued over the weekend, traders appear optimistic the conflict will remain relatively contained.
A report from the Wall Street Journal citing Middle Eastern and European officials said Iran has been urgently signaling that it seeks an end to hostilities and resumption of talks over its nuclear programs.
'Despite a weekend of violence between the two countries, investors showed no signs of panicking, judging by movements in financial markets on Monday,' said Russ Mould, investment director at AJ Bell.
However, he added, 'The Middle East conflict remains a fluid situation and there is the potential for markets to still experience sudden jolts if the tension escalates further.'
The rebound on Wall Street also comes as traders look ahead to a meeting of major world leaders at the G7 summit in the Canadian Rockies later this week.
Traders will be looking to the meeting for signs of progress on trade deals ahead of the end of President Donald Trump's 90-day pause on 'reciprocal tariffs' early next month.
The Federal Reserve's latest monetary policy announcement is also likely to attract attention from traders in the coming days.
While the central bank is widely expected to leave interest rates unchanged, the accompanying statement and Fed officials' latest projections may provide more clarity about the outlook for rates.
Sector News
Airline stocks have shown a substantial move back to the upside after moving sharply lower over the past few sessions, with the NYSE Arca Airline Index soaring by 3.8 percent.
Significant strength is also visible among semiconductor stocks, as reflected by the 3.4 percent surge by the Philadelphia Semiconductor Index.
Financial, networking and telecom stocks are also seeing considerable strength, while energy stocks are bucking the upward trend amid a pullback by the price of crude oil.
Other Markets
In overseas trading, stock markets across the Asia-Pacific region moved mostly higher during trading on Monday. Japan's Nikkei 225 Index jumped by 1.3 percent, while Hong Kong's Hang Seng Index climbed by 0.7 percent.
The major European markets have also moved to the upside on the day. While the French CAC 40 Index is up by 0.8 percent, the German DAX Index is up by 0.7 percent and the U.K.'s FTSE 100 Index is up by 0.4 percent.
In the bond market, treasuries are showing a lack of direction following the pullback seen last Friday. The yield on the benchmark ten-year note, which moves opposite of its price, is currently down by less than a basis point at 4.416 percent.
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