Following the rally seen in the previous session, stocks are seeing some further upside in morning trading on Tuesday. The major averages have all climbed into positive territory, with the tech-heavy Nasdaq outperforming once again.
The major averages have given back some ground in recent trading but currently remain firmly positive. The Dow is up 106.86 points or 0.4 percent at 28,100.19, the Nasdaq is up 99.93 points or 0.9 percent at 11,156.58 and the S&P 500 is up 22.65 points or 0.7 percent at 3,406.19.
Technology stocks continue to lead the markets higher, with big-name companies like Tesla (TSLA), Netflix (NFLX) and Facebook (FB) posting standout gains in morning trading.
Apple (AAPL), which has been a key driver of the markets in recent sessions, has pulled back off its highs of the session but remains up by 1.2 percent.
The tech sector is extending yesterday’s rebound after seeing considerable weakness last week, although the Nasdaq remains well off its recent record highs.
The strength on Wall Street also comes on the heels of upbeat Chinese economic data, as the country’s industrial production and retail sales increased in August from a year ago and beat expectations.
Nonetheless, trading activity appears somewhat subdued ahead of the Federal Reserve’s monetary policy announcement on Wednesday.
The Fed is widely expected to leave interest rates unchanged, but traders are likely to pay close attention to any tweaks to the accompanying statement. The central bank’s latest economic projections may also attract attention.
Meanwhile, traders have largely shrugged off a report from the Fed showing growth in U.S. industrial production slowed by much more than expected in the month of August.
The Fed said industrial production climbed by 0.4 percent in August after soaring by an upwardly revised 3.5 percent in July.
Economists had expected production to jump by 1.0 percent compared to the 3.0 percent spike originally reported for the previous month.
Production increased for the fourth consecutive month but remains 7.3 percent below its pre-pandemic February level.
“We are vigilant that future progress toward a full recovery in the industrial sector will be slow and uneven as a health solution remains out of reach and fiscal relief fades,” said Oren Klachkin, Lead U.S. Economist at Oxford Economics.
“While the travails are comparatively less severe than in certain services sectors, industrial production risks remain heavily tilted to the downside,” he added.
A separate report from the Labor Department showed another notable increase in U.S. import prices in the month of August, with prices jumping by more than expected.
Interest rate-sensitive utilities and commercial real estate stocks are seeing considerable strength in morning trading, with the Dow Jones Utilities Average and the Dow Jones U.S. Real Estate Index advancing by 2 percent and 1.7 percent, respectively.
Significant strength is also visible among semiconductor stocks, as reflected by the 1.7 percent gain being posted by the Philadelphia Semiconductor Index.
Software, biotechnology and telecom stocks are also seeing notable strength, while financial stocks have moved to the downside on the day.
In overseas trading, stock markets across the Asia-Pacific region turned in a mixed performance during trading on Tuesday. Japan’s Nikkei 225 Index fell by 0.4 percent, while China’s Shanghai Composite Index rose by 0.5 percent.
Meanwhile, the major European markets have all moved to the upside on the day. While the U.K.’s FTSE 100 Index has surged up by 1.1 percent, the French CAC 40 Index is up by 0.4 percent and the German DAX Index is up by 0.3 percent.
In the bond market, treasuries have climbed back near the unchanged line after seeing initial weakness. As a result, the yield on the benchmark ten-year note, which moves opposite of its price, is up by less than a basis point at 0.677 percent.
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