Stocks continue to see considerable strength in mid-day trading on Monday after showing a strong move to the upside early in the session. The tech-heavy Nasdaq is posting a particularly strong gain, soaring to a new record intraday high.
Currently, the major averages are all firmly in positive territory. The Dow is up 332.49 points or 1.3 percent at 26,159.85, the Nasdaq is up 228.70 points or 2.2 percent at 10,436.32 and the S&P 500 is up 43.87 points or 1.4 percent at 3,173.88.
Strength in overseas markets has carried over to Wall Street, as Chinese shares skyrocketed on the day amid positive commentary on the market from state media.
Traders also remain generally optimistic about the U.S. economic outlook following last Thursday’s better than expected jobs data.
In the latest sign of the rapid economic recovery, the Institute for Supply Management released a report showing a substantial turnaround in U.S. service sector activity in the month of June.
The ISM said its non-manufacturing index spiked to 57.1 in June from 45.4 in May, with a reading above 50 indicting an increase in service sector activity. Economists had expected the index to climb to 50.1.
The sharp increase by the non-manufacturing index reflected the largest single-month percentage-point increase since its debut in 1997.
“The non-manufacturing composite index indicated growth after two consecutive months of contraction,” said Anthony Nieves, Chair of the ISM Non-Manufacturing Business Survey Committee.
He added, “Respondents remain concerned about the coronavirus and the more recent civil unrest; however, they are cautiously optimistic about business conditions and the economy as businesses are beginning to reopen.”
The economic optimism continues to overshadow the recent spike in coronavirus cases even as the World Health Organization reported the biggest single-day increase in cases on Saturday.
Semiconductor stocks have shown a substantial move to the upside over the course of the session, with the Philadelphia Semiconductor Index spiking by 2.8 percent to a record intraday high.
Computer hardware, networking and software stocks are also seeing considerable strength on the day, contributing to the advance by the tech-heavy Nasdaq.
Significant strength has also emerged among retail stocks, as reflected by the 2.6 percent jump by the Dow Jones U.S. Retail Index. The index has also reached a new record intraday high.
Brokerage, housing and gold stocks are also turning in strong performances on the day, moving higher along with most of the other major sectors.
In overseas trading, stock markets across the Asia-Pacific region moved mostly higher during trading on Monday. Japan’s Nikkei 225 Index surged up by 1.8 percent, while China’s Shanghai Composite Index spiked by 5.7 percent.
The major European markets also showed strong moves to the upside on the day. While the U.K.’s FTSE 100 Index jumped by 2.1 percent, the German DAX Index and the French CAC 40 Index rallied by 1.6 percent and 1.5 percent, respectively.
In the bond market, treasuries have come under pressure after turning higher over the course of the previous session. As a result, the yield on the benchmark ten-year note, which moves opposite of its price, is up by 2.7 basis points at 0.696 percent.
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