WASHINGTON (dpa-AFX) - Following the sharp pullback seen over the two previous sessions, stocks have shown a strong move back to the upside during trading on Monday. The major averages have all moved sharply higher, with the tech-heavy Nasdaq leading the charge.
Currently, the major averages are just off their highs of the session. The Nasdaq is up 311.34 points or 1.5 percent at 20,961.47, the S&P 500 is up 67.80 points or 1.1 percent at 6,305.81 and the Dow is up 391.34 points or 0.9 percent at 43,979.92.
The rally on Wall Street comes as traders look to pick up stocks at reduced levels following the recent sell-off, which saw the Nasdaq and the S&P 500 pull back well off their record highs.
The steep drop seen last Friday came amid concerns about the economic impact of President Donald Trump's new tariffs, weaker than expected jobs data and a slump by shares of Amazon (AMZN).
Optimism the weak jobs data will lead the Federal Reserve to lower interest rates next month may be contributing to the buying interest.
According to CME Group's FedWatch Tool, the chances of a quarter point rate cut in September have jumped to 85.7 percent from 63.1 percent a week ago.
On the U.S. economic front, the Commerce Department released a report showing factory orders pulled back sharply in the month of June.
The Commerce Department said factory orders dove by 4.8 percent in June after soaring by an upwardly revised 8.3 percent in May.
Economists had expected factory orders to plunge by 5.0 percent compared to the 8.2 percent surge originally reported for the previous month.
Sector News
Networking stocks have shown a substantial move to the upside on the day, with the NYSE Arca Networking Index spiking by 7.7 percent to a record intraday high.
CommScope (COMM) has led the sector higher, skyrocketing by 67.7 percent after announcing an agreement to sell its connectivity and cable solutions business to Amphenol (APH).
Gold stocks are also seeing significant strength amid a continued surge by the price of the precious metal, driving the NYSE Arca Gold Bugs Index up by 3.7 percent.
Software, brokerage and computer hardware stocks have also shown notable moves to the upside, moving higher along with most of the other major sectors.
Other Markets
In overseas trading, stock markets across the Asia-Pacific region moved mostly higher on Monday. China's Shanghai Composite Index climbed by 0.7 percent and Hong Kong's Hang Seng Index advanced by 0.9 percent, although Japan's Nikkei 225 Index bucked the uptrend and slumped by 1.3 percent.
Meanwhile, the major European markets have all moved to the upside on the day. While the German DAX Index is up by 1.2 percent, the French CAC 40 Index is up by 1.0 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 surge seen in the previous session. Currently, the yield on the benchmark ten-year note, which moves opposite of its price, is down by less than a basis point at 4.218 percent.
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