WASHINGTON (dpa-AFX) - After moving to the upside at the start of trading, stocks have given back some ground over the course of the session on Monday. The major averages have pulled back well off their best levels of the day but remain in positive territory.
Currently, the major averages are posting modest gains. The Dow is up 89.82 points or 0.2 percent at 43,909.09, the Nasdaq is up 32.24 points or 0.2 percent at 20,305.70 and the S&P 500 is up 11.45 points or 0.2 percent at 6,184.52.
The initial strength on Wall Street came amid ongoing optimism about trade deals ahead of the impending deadline for U.S. reciprocal tariffs early next month.
Positive sentiment was also generated in reaction to news Canada has rescinded its digital services tax on American tech firms, which were initially set to begin being collected today.
The move comes after President Donald Trump said last Friday that ending trade talks with Canada due to the digital services tax.
'Rescinding the digital services tax will allow the negotiations of a new economic and security relationship with the United States to make vital progress and reinforce our work to create jobs and build prosperity for all Canadians,' said Canadian Finance Minister Francois-Philippe Champagne.
The early upward move lifted the Nasdaq and the S&P 500 to new record intraday highs, but buying interest has waned since then, leading to some profit taking.
Traders may also be reluctant to make more significant moves ahead of the release of some key economic data later in the week, including the Labor Department's closely watched monthly jobs report.
Some traders may also be away from their desks ahead of the Fourth of July, with the markets set to close early on Thursday and remain closed on Friday.
Sector News
Computer hardware stocks are turning in some of the market's best performances on the day, with the NYSE Arca Computer Hardware Index climbing by 1.9 percent to a four-month intraday high.
Significant strength is also visible among networking stocks, as reflected by the 1.6 percent gain being posted by the NYSE Arca Networking Index.
Gold and software stocks are also seeing some strength on the day, while transportation stocks have moved back to the downside.
Other Markets
In overseas trading, stock markets across the Asia-Pacific region moved mostly higher during trading on Monday. Japan's Nikkei 225 Index advanced by 0.8 percent, while China's Shanghai Composite Index climbed by 0.6 percent.
Meanwhile, the major European markets have moved to the downside on the day. While the German DAX Index is down by 0.4 percent, the U.K.'s FTSE 100 Index is down by 0.3 percent and the French CAC 40 Index is down by 0.1 percent.
In the bond market, treasuries are regaining ground following the pullback seen last Friday. Subsequently, the yield on the benchmark ten-year note, which moves opposite of its price, is down by 1.4 basis points at 4.269 percent.
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