WASHINGTON (dpa-AFX) - Stocks have moved mostly higher during trading on Monday, regaining ground following the nosedive seen over the two previous sessions. The major averages have all shown strong moves back to the upside.
Currently, the major averages are off their highs of the session but still firmly positive. The Dow is up 489.60 points or 1 percent at 52,259.91, the Nasdaq is up 211.54 points or 0.8 percent at 25,648.54 and the S&P 500 is up 48.83 points or 0.6 percent at 7,628.90.
The rebound on Wall Street comes as traders look to pick up stocks at relatively reduced levels following the recent sell-off.
The tech-heavy Nasdaq plunged to a three-month closing low last Friday, while the S&P 500 slumped to its lowest closing level in well over a month.
A sharp pullback by the price of crude oil has also generated buying interest, with U.S. crude oil futures plummeting by nearly 7 percent and plunging back below $100 a barrel.
The steep drop in the price of crude oil comes amid renewed optimism about a potential diplomatic solution to the ongoing conflict in the Middle East.
Over the weekend, Secretary of State Marco Rubio said President Donald Trump would like to resolve the U.S.-Iran war 'diplomatically.'
'What the president expresses to you is incredible confidence that if we needed to do something militarily, we would have the ability to do it, and we really we have everything we need to be successful,' Rubio said. 'But we would prefer to do it peacefully.'
Ongoing discussions involving Iranian officials and Qatari mediators have also raised hopes of possible breakthrough that could ease supply concerns and improve the outlook for global energy markets.
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 October.
The ISM said its manufacturing PMI rose to 55.5 in October after edging down to 54.5 in September, with a reading above 50 indicating growth. Economists had expected the index to inch up to 54.6.
Sector News
Airline stocks have moved sharply higher amid the nosedive by crude oil prices, with the NYSE Arca Airline Index soaring by 6.6 percent.
Substantial strength is also visible among housing stocks, as reflected by the 3.4 percent spike by the Philadelphia Housing Sector Index. The index has jumped to its highest intraday level in two months.
Retail, gold and brokerage stocks are also seeing considerable strength on the day, while energy and computer hardware stocks are showing significant moves to the downside.
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 fell by 0.3 percent, while China's Shanghai Composite Index jumped by 1.1 percent.
Meanwhile, the major European markets have all moved to the upside on the day. While the French CAC 40 Index is up by 1 percent, the German DAX Index is up by 0.6 percent and the U.K.'s FTSE 100 Index is up by 0.3 percent.
In the bond market, treasuries have pulled back off their early highs but continue to see modest strength. Subsequently, the yield on the benchmark ten-year note, which moves opposite of its price, is down by 1.4 basis points at 4.915 percent.
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