WASHINGTON (dpa-AFX) - Stocks have moved sharply higher during trading on Tuesday, regaining ground after coming under pressure over the course of the previous session. The major averages have all moved to the upside, with the tech-heavy Nasdaq leading the charge.
Currently, the major averages are well off their highs of the session but still firmly positive. The Nasdaq is up 353.11 points or 1.7 percent at 21,147.75, the S&P 500 is up 80.08 points or 1.3 percent at 6,423.80 and the Dow is up 422.93 points or 0.9 percent at 45,639.07.
The substantial rebound on Wall Street comes in reaction to reports President Donald Trump is looking to end the war in the Middle East.
A report from the Wall Street Journal said Trump told aides he's willing to end the U.S. military campaign against Iran even if the Strait of Hormuz remains largely closed.
Citing administration officials, the WSJ said Trump and his aides assessed that a mission to pry open the Strait of Hormuz would push the conflict beyond his timeline of four to six weeks.
The officials told the Journal that Trump would continue to pressure Tehran diplomatically to resume the free flow of trade through the strait, failing which he would pressure allies to take the lead.
Trump appeared to back up the report in a post on Truth Social this morning urging other countries to 'build up some delayed courage, go to the Strait, and just TAKE IT.'
'You'll have to start learning how to fight for yourself, the U.S.A. won't be there to help you anymore, just like you weren't there for us,' Trump said. 'Iran has been, essentially, decimated. The hard part is done. Go get your own oil!'
Bargain hunting is also contributing to the strength on Wall Street, with the Nasdaq and the S&P 500 bouncing off their lowest closing levels in almost eight months.
Sector News
Gold stocks are moving sharply higher along with the price of the precious metal, resulting in a 4.2 percent spike by the NYSE Arca Gold Bugs Index.
Significant strength is also visible among semiconductor stocks, with the Philadelphia Semiconductor Index surging by 2.7 percent after ending Monday's session at a three-month closing low.
Considerable strength is also visible among biotechnology stocks, as reflected by the 2.4 percent jump by the NYSE Arca Biotechnology Index.
Oil service, steel and airline stocks are also seeing notable strength, moving higher along with most of the other major sectors.
Other Markets
In overseas trading, stock markets across the Asia-Pacific region turned in a mixed performance on Tuesday. Japan's Nikkei 225 Index slumped by 1.6 percent and China's Shanghai Composite Index slid by 0.8 percent, while Hong Kong's Hang Seng Index edged up by 0.2 percent.
Meanwhile, the major European markets have all moved to the upside on the day. While the German DAX Index is up by 0.7 percent, the French CAC 40 Index and the U.K.'s FTSE 100 Index are both up by 0.6 percent.
In the bond market, treasuries are extending the strong upward move seen in the previous session. Subsequently, the yield on the benchmark ten-year note, which moves opposite of its price, is down by 1.8 basis points at 4.324 percent.
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