WASHINGTON (dpa-AFX) - Stocks moved sharply higher over the course of the trading session on Monday, with technology stocks seeing a significant rebound following last week's sell-off. The tech-heavy Nasdaq posted a standout gain, although all three major averages moved to the upside on the day.
The major averages moved roughly sideways going into the close, hovering near their best levels of the day. The Nasdaq surged 280.63 points or 1.6 percent to 18,007.57, the S&P 500 jumped 59.41 points or 1.1 percent to 5,564.41 and the Dow rose 127.91 points or 0.3 percent to 40,415.44.
The strength on Wall Street came as tech stocks regained ground following the steep drop seen last week, which saw the Nasdaq plunge by 3.7 percent.
AI darling and tech sector leader Nvidia (NVDA) helped lead the way back to the upside, spiking by 4.8 percent after plummeting by 8.8 percent last week.
The advance by Nvidia contributed to considerable strength among semiconductor stocks, with the Philadelphia Semiconductor Index soaring by 4.0 percent after ending last Friday's trading at its lowest closing level in well over a month.
Considerable strength was also visible among computer hardware stocks, as reflected by the 1.8 percent jump by the NYSE Arca Computer Hardware Index.
Software stocks also saw significant strength, while tobacco, brokerage and housing stocks turned in strong performances outside the tech sector.
Stocks also moved higher after President Joe Biden announced his decision to drop out of the presidential race and endorsed his Vice President Kamala Harris.
Biden has been under pressure to step aside after his disastrous debate performance raised questions about his fitness to serve another term as president.
While Republican nominee Donald Trump is seen as a more pro-business candidate, his return to the White House could also lead to increased trade tensions with China.
'The market appears to have welcomed Joe Biden's withdrawal from the presidential race,' said Dan Coatsworth, investment analyst at AJ Bell.
'However, there is still a lot of uncertainty until the new Democratic candidate is confirmed,' he added. 'That means we could see heightened volatility over the next few weeks, with assets quickly changing direction depending on the latest comments from Washington.'
Later in the week, focus is likely to shift to a report on personal income and spending in June, which includes readings on inflation said to be preferred by the Federal Reserve.
The data could have a significant impact on the outlook for interest rates, with the Fed currently widely expected to lower interest rates by a quarter point in September.
Other Markets
In overseas trading, stock markets across the Asia-Pacific region moved mostly lower during trading on Monday. Japan's Nikkei 225 Index slumped by 1.2 percent, while China's Shanghai Composite Index slid by 0.6 percent.
Meanwhile, the major European markets moved to the upside on the day. While the U.K.'s FTSE 100 Index climbed by 0.5 percent, the French CAC 40 Index and the German DAX Index jumped by 1.2 percent and 1.3 percent, respectively.
In the bond market, treasuries moved modestly lower over the course of the session after seeing early strength. Subsequently, the yield on the benchmark ten-year note, which moves opposite of its price, rose 2.1 basis points to 4.260 percent after hitting a low of 4.212 percent.
Looking Ahead
On Tuesday, the National Association of Realtors is scheduled to release its report on existing home sales in the month of June
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