WASHINGTON (dpa-AFX) - Stocks have moved sharply higher during trading on Monday, extending the strong upward move seen over the two previous sessions. The major averages have all shown significant moves to the upside, with the tech-heavy Nasdaq leading the charge.
Currently, the major averages are just off their highs of the session. The Nasdaq is up 453.65 points or 1.8 percent at 25,827.51, the S&P 500 is up 87.26 points or 1.2 percent at 7,576.98 and the Dow is up 577.75 points or 1.1 percent at 53,062.78.
The rally on Wall Street comes as crude oil prices are plummeting amid renewed optimism about an end to the conflict in the Middle East.
U.S. crude oil futures are plunging by more than 6 percent after President Donald Trump said in a post on Truth Social that he had canceled a planned attack on Iran.
'We have just been asked by Iran, and other Middle Eastern Countries, to hold off any attack in that the perimeters of a deal has been agreed to,' Trump said. 'This would include the Immediate, Complete, and Total OPENING OF THE HORMUZ STRAIT, and an end to Iran's nuclear threat.'
He added, 'Based on this request, I have agreed, for the future benefit of the WORLD and, likewise, the survival of a successful and prosperous Iran, to cancel the attack, subject to being able to rapidly make a DEAL.'
Trump later claimed that talks between the U.S. and Iran would begin Monday afternoon, although Tehran has denied there are plans for direct negotiations with the U.S.
Airline stocks are seeing substantial strength amid the nosedive by crude oil prices, with the NYSE Arca Airline Index soaring by 5.5 percent.
Significant strength is also visible among software stocks, as reflected by the 3.2 percent surge by the Dow Jones U.S. Software Index. The index has jumped to a two-month intraday high.
Retail stocks are also extending the rally seen last Friday, driving the Dow Jones U.S. Retail Index up by 2.4 percent to its highest intraday level in almost three months.
Housing, gold and computer hardware stocks are also seeing considerable strength, while pharmaceutical stocks are bucking the uptrend, dragging the NYSE Arca Pharmaceutical Index down by 2.1 percent.
In U.S. economic news, the Institute for Supply Management released a report showing its reading on U.S. manufacturing activity increased by more than expected in the month of July.
The ISM said its manufacturing PMI climbed to 55.6 in July from 53.3 in June, with a reading above 50 indicating growth in the sector. Economists had expected the index to rise to 54.0.
With the much bigger-than-expected increase, the index reached its highest level since hitting 55.9 in May 2022.
In overseas trading, stock markets across the Asia-Pacific region turned in a mixed performance during trading on Monday. Japan's Nikkei 225 Index slid by 0.9 percent, while Hong Kong's Hang Seng Index climbed by 0.5 percent.
Meanwhile, European stocks have moved mostly higher on the day. The German DAX Index is up by 1.8 percent and the French CAC 40 Index is up by 1.5 percent, although the U.K.'s FTSE 100 Index has bucked the uptrend and dipped by 0.2 percent.
In the bond market, treasuries have shown a strong move back to the upside after moving sharply lower over the past few sessions. Subsequently, the yield on the benchmark ten-year note, which moves opposite of its price, is down by 6.1 basis points at 4.684 percent.
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