WASHINGTON (dpa-AFX) - Stocks moved sharply higher early in the session on Monday and continued to turn in a strong performance throughout the day. With the upward move, the major averages offset a large chunk of the notable pullback seen over the two previous sessions.
The major averages saw further upside going into the close, ending the day just off their highs of the session. The Nasdaq surged 403.45 points or 2.0 percent to 21,053.58, the S&P 500 shot up 91.93 points or 1.5 percent to 6,329.94 and the Dow jumped 585.06 points or 1.3 percent to 44,173.64.
The rally on Wall Street came as traders looked 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 also contributed to the buying interest.
According to CME Group's FedWatch Tool, the chances of a quarter point rate cut in September have jumped to 91.9 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 showed a substantial move to the upside on the day, with the NYSE Arca Networking Index spiking by 10.0 percent to a record closing high.
CommScope (COMM) led the sector higher, skyrocketing by 86.3 percent after announcing an agreement to sell its connectivity and cable solutions business to Amphenol (APH).
Gold stocks also saw significant strength amid a continued surge by the price of the precious metal, driving the NYSE Arca Gold Bugs Index up by 4.7 percent.
Software, brokerage and computer hardware stocks also showed strong 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 all moved to the upside on the day. While the German DAX Index shot up by 1.4 percent, the French CAC 40 Index jumped by 1.1 percent and the U.K.'s FTSE 100 Index increased by 0.7 percent.
In the bond market, treasuries moved modestly higher over the course of the session after showing a lack of direction early in the day. Subsequently, the yield on the benchmark ten-year note, which moves opposite of its price, dipped 2.0 basis points to a three-month closing low of 4.200 percent.
Looking Ahead
Trading on Tuesday may be impacted by reaction to reports on the U.S. trade deficit and service sector activity as well as the latest earnings news.
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