WASHINGTON (dpa-AFX) - After moving to the downside early in the session, stocks have regained ground over the course of the trading day on Monday. The major averages have climbed well off their lows of the session and into positive territory.
Currently, the major averages are posting modest gains. The Nasdaq is up 65.93 points or 0.3 percent at 22,697.40, the S&P 500 is up 13.01 points or 0.2 percent at 6,677.37 and the Dow is up 61.11 points or 0.1 percent at 46,376.38.
Profit taking contributed to the initial weakness on Wall Street, with some traders looking to cash in on the recent strength in the markets.
Selling pressure waned shortly after the start of trading, however, as traders remain optimistic about the outlook for the markets amid expectations of further interest rate cuts by the Federal Reserve.
After cutting rates by a quarter point last Wednesday, the Fed is widely expected to lower rates by another quarter at each of its next two meetings in October and December.
Later this week, the Commerce Department is scheduled to release the Fed's preferred readings on consumer price inflation, which could impact the outlook for rates.
A number of Fed officials, including Fed Chair Jerome Powell, are also scheduled to deliver remarks over the next several days.
Meanwhile, traders have largely shrugged off news that President Donald Trump has signed a proclamation to restrict the entry into the U.S. of certain H-1B aliens as nonimmigrant workers.
The White House said new H-1B applicants would be required to pay a $100,000 fee, with the move intended to 'curb abuses that displace U.S. workers and undermine national security.'
Sector News
Gold stocks are seeing considerable strength as the price of the precious metal surges to a new record high, with the NYSE Arca Gold Bugs Index climbing by 1.8 percent to its highest intraday level in over thirteen years.
Computer hardware and semiconductor stocks have also shown strong moves to the upside, contributing to the increase by the tech-heavy Nasdaq.
On the other hand, housing stocks are seeing significant weakness on the day, dragging the Philadelphia Housing Sector Index down by 1.4 percent to a one-month intraday low.
Notable weakness is also visible among airline stocks, as reflected by the 1.3 percent loss being posted by the NYSE Arca Airline Index. The index has also fallen to its lowest intraday level in a month.
Other Markets
In overseas trading, stock markets across the Asia-Pacific region turned in a mixed performance during trading on Monday. Japan's Nikkei 225 Index shot up by 1.0 percent, while Hong Kong's Hang Seng Index slid by 0.8 percent.
Meanwhile, European stocks have moved mostly lower on the day. The German DAX Index is down by 0.6 percent and the French CAC 40 Index is down by 0.5 percent, although the U.K.'s FTSE 100 Index is just above the unchanged line.
In the bond market, treasuries are showing a lack of direction after trending lower over the past few sessions. Subsequently, the yield on the benchmark ten-year note, which moves opposite of its price, is down by less than a basis point at 4.137 percent.
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