WASHINGTON (dpa-AFX) - Following the notable rebound seen during last Friday's session, stocks showed an even more substantial move to the upside during trading on Monday. The tech-heavy Nasdaq showed a particularly strong upward move on the day.
The Nasdaq surged 598.92 points or 2.7 percent to 22,872.01, largely offsetting the steep drop seen last week. The S&P 500 also jumped 102.13 points or 1.6 percent to 6,705.12, while the narrower Dow posted a more modest gain, rising 202.86 points or 0.4 percent to 46,448.27.
The rally on Wall Street came as traders continued to pick up stocks at relatively reduced levels, as the jump seen during last Friday's session only partly offset the steep drop seen earlier in the week.
Concerns about valuations and the outlook for interest rates weighed on the markets for much of last week, dragging the Nasdaq and the S&P 500 down to their lowest closing levels in over two months last Thursday.
Despite the rebound on Friday, the major averages all posted steep losses for the week. The Nasdaq plunged by 2.7 percent, the S&P 500 tumbled by 2.0 percent and the Dow slumped by 1.9 percent.
Positive sentiment may also have been generated amid signs of progress toward an agreement to end the protracted war between Russia and Ukraine.
Secretary of State Marco Rubio said 'tremendous progress' had been made in talks with Ukrainian officials, calling the sticking points on the Trump administration's peace proposal 'not insurmountable.'
The markets also benefitted from renewed optimism about the outlook for interest rates following the latest remarks by Federal Reserve officials.
In an interview with Fox Business this morning, Fed Governor Christopher Waller indicated he supports cutting rates by another quarter point in December.
Waller's comments come following dovish remarks by New York Federal Reserve President John Williams last Friday, when he said he sees 'room for a further adjustment' to rates in the near term.
CME Group's FedWatch Tool currently indicates an 84.9 percent chance the Fed will cut rates by a quarter point next month, up sharply from 42.4 percent a week.
Sector News
Semiconductor stocks have helped lead the markets higher, with the Philadelphia Semiconductor Index soaring by 4.6 percent. The index continued to regain ground after ending last Thursday's trading at its lowest closing level in almost two months.
Computer hardware and networking stocks also saw substantial strength, contributing to the surge by the tech-heavy Nasdaq.
Outside of the tech sector, gold stocks moved sharply higher along with the price of the precious metal, resulting in a 5.8 percent spike by the NYSE Arca Gold Bugs Index.
Airline, brokerage and biotechnology stocks also saw notable strength on the day, 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, with the Japanese markets closed for a holiday. Hong Kong's Hang Seng Index shot up by 2.0 percent, while Australia's S&P/ASX 200 Index jumped by 1.3 percent.
Meanwhile, the major European markets turned mixed over the course of the session. While the German DAX Index climbed by 0.6 percent, the U.K.'s FTSE 100 Index edged down by 0.1 percent and the French CAC 40 Index dipped by 0.3 percent.
In the bond market, treasuries extended the upward trend seen over the past several sessions. As a result, the yield on the benchmark ten-year note, which moves opposite of its price, fell 2.5 basis points to a nearly one-month closing low of 4.038 percent.
Looking Ahead
Trading on Tuesday may be impacted by reaction to long-delayed reports on retail sales and producer prices in September as well as a reading on consumer confidence in November.
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