WASHINGTON (dpa-AFX) - After moving sharply higher early in the session, stocks continue to turn in a strong performance throughout the trading day on Monday. The major averages all showed strong moves to the upside, partly offsetting the steep losses posted last Friday.
The major averages moved roughly sideways after the early surge, hovering near their best levels of the day. The Nasdaq spiked 490.18 points or 2.2 percent to 22,694.61, the S&P 500 shot up 102.21 points or 1.6 percent to 6,654.72 and the Dow jumped 587.98 points or 1.3 percent to 46,067.58.
The substantial rebound on Wall Street came as traders looked to pick up stocks at somewhat reduced levels following the steep drop seen over the course of the previous session.
The major averages plunged to their lowest closing levels in a month on Friday amid concerns about a U.S.-China trade war, with President Donald Trump threatening a 'massive increase' in tariffs on Chinese imports in retaliation for its expansion of export controls on rare earths.
Trump stuck a more conciliatory tone in a post on social media platform Truth Social on Sunday, helping to ease the trade war worries.
'Don't worry about China, it will all be fine!' Trump said. 'Highly respected President Xi just had a bad moment. He doesn't want Depression for his country, and neither do I. The U.S.A. wants to help China, not hurt it!'
The rally comes amid a lack of major U.S. economic data, with the economic calendar likely to remain quiet throughout much of the week due to the ongoing government shutdown.
The Bureau of Labor Statistics has revealed the report on consumer price inflation that had been due to be released on Wednesday will now be released on Friday, October 24th.
While no other releases will be produced until the resumption of regular government services, the BLS noted the consumer price index data allows the Social Security Administration to meet statutory deadlines necessary to ensure the accurate and timely payment of benefits.
Due to the lack of economic data, trading this week may be driven by reaction to the latest earnings news, with financial giants Citigroup (C), Goldman Sachs (GS), JPMorgan Chase (JPM), Wells Fargo (WFC), Bank of America (BAC) and Morgan Stanley (MS) among the companies due to report their quarterly results.
Sector News
Semiconductor and computer hardware stocks turned in some of the market's best performances after leading Friday's sell-off, with the Philadelphia Semiconductor Index and the NYSE Arca Computer Hardware Index both soaring by 4.9 percent.
Gold stocks also saw substantial strength as the price of the precious metal skyrocketed to a new record high, resulting in a 4.7 percent spike by the NYSE Arca Gold Bugs Index.
Steel, oil service, networking and airline stocks also showed significant moves to the upside amid broad based buying interest on Wall Street.
Other Markets
In overseas trading, stock markets across the Asia-Pacific region moved mostly lower during trading on Monday, with Japanese markets closed for a holiday. China's Shanghai Composite Index dipped by 0.2 percent, while Hong Kong's Hang Seng Index tumbled by 1.5 percent.
Meanwhile, the major European markets moved to the upside on the day. While the German DAX Index climbed by 0.6 percent, the French CAC 40 Index and the U.K.'s FTSE 100 Index both rose by 0.2 percent.
The bond markets are closed today in observance of the Columbus Day holiday.
Looking Ahead
Citigroup, Goldman Sachs, JPMorgan Chase and Wells Fargo are among the companies due to report their quarterly results before the start of trading on Tuesday.
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