WASHINGTON (dpa-AFX) - Following the rebound seen during last Friday's session, stocks showed a more substantial move to the upside during trading on Monday. The major averages all moved sharply higher, with the tech-heavy Nasdaq leading the charge.
The major averages pulled back off their highs going into the close but still posted strong gains. The Nasdaq spiked 673.71 points or 2.7 percent to 25,253.14, the S&P 500 surged 173.08 points or 2.4 percent to 7,549.94 and the Dow jumped 1,104.02 points or 2.2 percent to 52,389.75.
The rally on Wall Street came as traders continued to pick up stocks at relatively reduced levels following the historic sell-off seen last Thursday.
Technology stocks helped lead the way higher once again, helping the Nasdaq recover further from its lowest levels in over six months.
Buying interest was also generated in reaction to a steep drop by the price of crude oil, with U.S. crude oil futures plunging by more than 4 percent.
Crude oil futures came under pressure after President Donald Trump said he was 'highly unlikely' to order more attacks on Iran as long as talks continue on Iran's nuclear program and reopening the Strait of Hormuz.
However, Secretary of State Marco Rubio later told reporters that talks with Iran have not been very productive because the Iranian demands are 'outrageous and ridiculous and really not realistic.'
The extended recovery by tech stocks came despite a sharp pullback by shares of Nvidia (NVDA), with the AI leader plunging by 4.4 percent.
The slump by Nvidia comes after the chipmaker said it would open an investigation into reports that CEO Jensen Huang was the target of a foreign intelligence effort.
'Today's gains suggest many investors are satisfied the AI game still has yards left to run,' said AJ Bell head of financial analysis Danni Hewson. 'Some of Nvidia's biggest rivals have been attracting particular attention today as shares in the likes of AMD and Intel enjoyed a Monday bounce.'
Sector News
Networking stocks extended the substantial rebound seen during last Friday's session, with the NYSE Arca Networking Index soaring by 7.9 percent. The index continued to rebound from the seven-month closing low set last Thursday.
Significant strength was also visible among semiconductor stocks, as reflected by the 6.9 percent spike by the Philadelphia Semiconductor Index.
Outside of the tech sector, airline stocks also moved sharply higher amid the steep drop in crude oil prices, driving the NYSE Arca Airline Index up by 5.7 percent.
Gold, housing and financial stocks also saw considerable 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 during trading on Monday. Japan's Nikkei 225 Index surged by 2.3 percent, while South Korea's Kospi fell by 0.8 percent.
Meanwhile, the major European markets all showed strong moves to the upside on the day. While the German DAX Index surged by 1.7 percent, the French CAC 40 Index shot up by 1.2 percent and the U.K.'s FTSE 100 Index jumped by 1 percent.
In the bond market, treasuries closed roughly flat following a lackluster session. Subsequently, the yield on the benchmark ten-year note, which moves opposite of its price, inched up by less than a basis point to 4.864 percent.
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