Following the mixed performance seen in the previous sessions, stocks showed a strong move to the upside during trading on Monday.
The Dow jumped 376.66 points or 1.1 percent to 34,245,93, the Nasdaq surged 173.67 points or 1.5 percent to 11,891.79 and the S&P 500 shot up 46.83 points or 1.1 percent to 4,137.29.
The strength on Wall Street came as some traders looked to pick up stocks at relatively reduced levels following the weakness seen last week, which partly reflected ongoing concerns about the outlook for interest rates.
Overall trading activity remained subdued, however, as traders look ahead to tomorrow’s closely watched report on consumer price inflation.
Consumer prices are expected to show a monthly increase in January, although the annual rate of growth is expected to slow to 6.2 percent from 6.5 percent in the previous month.
The inflation data could have a significant impact on the outlook for interest rates amid recent speculation the Federal Reserve may raise rates higher than currently anticipated.
Software stocks showed a significant move to the upside on the day, driving the Dow Jones U.S. Software Index up by 2.4 percent.
Considerable strength was also visible among tobacco stocks, as reflected by the 2.1 percent jump by the NYSE Arca Tobacco Index.
Housing, retail and biotechnology stocks also saw notable strength moving higher along with most of the other major sectors.
In overseas trading, stock markets across the Asia-Pacific region moved mostly lower during trading on Monday. Japan’s Nikkei 225 Index slid by 0.8 percent, while Hong Kong’s Hang Seng Index edged down by 0.1 percent.
Meanwhile, the major European markets moved to the upside on the day. While the French CAC 40 Index jumped by 1.1 percent, the U.K.’s FTSE 100 Index advanced by 0.8 percent and the German DAX Index rose by 0.6 percent.
In the bond market, treasuries are regaining ground following recent weakness. Subsequently, the yield on the benchmark ten-year note, which moves opposite of its price, fell by 2.7 basis points a to 3.717 percent.
Trading on Tuesday is likely to be driven by reaction to the report on consumer price inflation, which could impact the outlook for interest rates.
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