U.S. Stocks Show Strong Move To The Upside In Morning Trading

Stocks have moved sharply higher in morning trading on Monday, extending the strong upward move seen over the course of the previous session. The major averages have all climbed firmly into positive territory.

The major averages have seen further upside in recent trading, reaching new highs for the session. The Dow is up 501.38 points or 1.9 percent at 27,675.34, the Nasdaq is up 161.75 points or 1.5 percent at 11,075.32 and the S&P 500 is up 55.55 points or 1.7 percent at 3,354.01.

The strength on Wall Street comes following a rally seen in the European markets, as traders pick up stocks at relatively reduced levels.

Traders seem to have shrugged off recent concerns about a surge in coronavirus cases and uncertainty about the U.S. presidential election.

The markets may also be benefiting from optimism about a new coronavirus bill after House Speaker Nancy Pelolsi said a new package is still possible. House Democrats plan to unveil a new $2.4 trillion coronavirus relief bill.

The price tag for the bill is $1 trillion less than a stimulus package the House passed back in May but may still be too high for Republicans.

Oil service stocks are turning in some of the market’s best performances in morning trading, with the Philadelphia Oil Service Index surging up by 3.4 percent.

The rally by oil service stocks comes despite a modest decrease by the price of crude oil, as crude for November delivery is slipping $0.06 to $40.19 a barrel.

Substantial strength is also visible among airline stocks, resulting in a 2.7 percent jump by the NYSE Arca Airline Index.

Financial stocks are also seeing considerable strength on the day, with the NYSE Arca Broker/Securities Index and the KBW Bank Index both up by 2.8 percent.

Networking, chemical and steel stocks have also shown strong moves to the upside, moving higher along with most of the other major sectors.

In overseas trading, stock markets across the Asia-Pacific region turned in a mixed performance during trading on Monday. Japan’s Nikkei 225 Index jumped by 1.3 percent, while China’s Shanghai Composite Index edged down by 0.1 percent.

Meanwhile, the major European markets have all moved sharply higher on the day. While the German DAX Index has spiked by 2.9 percent, the French CAC 40 Index is up by 2.2 percent and the U.K.’s FTSE 100 Index is up by 1.7 percent.

In the bond market, treasuries have climbed back near the unchanged line after seeing initial weakness. Subsequently, the yield on the benchmark ten-year note, which moves opposite of its price, is unchanged at 0.659 percent.

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