WASHINGTON (dpa-AFX) - After ending last Friday's session well off their worst levels but still mostly lower, stocks have moved back to the upside during trading on Monday. With the upward move, the tech-heavy Nasdaq has reached a new record intraday high.
Currently, the Nasdaq is up 181.20 points or 0.8 percent at 21,881.58 and the S&P 500 is up 22.50 points or 0.4 percent at 6,504.00. The narrower Dow has shown a lack of direction over the course of the session but is currently up 8.83 points or less than a tenth of a percent at 45,409.69.
The strength on Wall Street may reflect optimism about the outlook for interest rates following last Friday's weaker-than-expected U.S. employment data.
Following the release of a closely watched report showing employment increased by much less than expected in the month of August, CME Group's FedWatch Tool is currently indicating a 90.2 percent chance the Fed will lower rates by a quarter point later this month.
Overall trading activity appears somewhat subdued, however, as traders look ahead to the release of inflation data that could impact the outlook for rates.
The Labor Department is scheduled to release reports on producer price inflation and consumer price inflation on Wednesday and Thursday, respectively.
Economists currently expect the annual rate of producer price growth in August to come in unchanged from July at 3.3 percent.
The annual rate of growth by consumer prices is expected to accelerate to 2. 9 percent in August from 2.7 percent in July, while the annual rate of growth by core consumer prices, which exclude food and energy prices, is expected to hold at 3.1 percent.
Sector News
Software stocks have shown a strong move to the upside on the day, driving the Dow Jones U.S. Software Index up by 1.3 percent.
Notable strength is also visible among semiconductor stocks, as reflected by the 1.2 percent gain being posted by the Philadelphia Semiconductor Index.
On the other hand, telecom stocks have moved sharply lower, dragging the NYSE Arca North American Telecom Index down by 2.0 percent.
Oil service, biotechnology and utilities stocks are also seeing significant weakness, helping limit the upside for the broader markets.
Other Markets
In overseas trading, stock markets across the Asia-Pacific region moved mostly higher during trading on Monday. Japan's Nikkei 225 Index shot up by 1.5 percent, while China's Shanghai Composite Index climbed by 0.4 percent.
Meanwhile, the major European markets have turned mixed on the day. While the U.K.'s FTSE 100 Index is down by 0.2 percent, the French CAC 40 Index is up by 0.5 percent and the German DAX Index is up by 0.6 percent.
In the bond market, treasuries are extending the strong upward move seen over the past few sessions. As a result, the yield on the benchmark ten-year note, which moves opposite of its price, is down by 2.3 basis points at 4.063 percent.
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