WASHINGTON (dpa-AFX) - Stocks have moved moderately higher over the course of the trading session on Monday, adding to the strong gains posted last week. The major averages have fluctuated as the day has progressed but are currently all in positive territory.
The Dow is up 183.32 points or 0.5 percent at 40,843.08, the Nasdaq is up 45.23 points or 0.3 percent at 17,676.95 and the S&P 500 is up 19.33 points or 0.4 percent at 5,573.58.
Stocks continue to benefit from recent upward momentum, with the major averages extending the upward trend seen over the past several sessions.
The Nasdaq and the S&P 500 are moving higher for the eight consecutive session and have more than offset the steep drop seen early this month.
The buying interest also comes as recent data has eased concerns about the economic outlook while also increasing confidence the Federal Reserve will cut interest rates next month.
According to CME Group's FedWatch Tool, there is a 75.5 percent of a quarter point rate cut next month and a 24.5 percent chance of a half point rate cut.
In U.S. economic news, the Conference Board released a report showing its reading on leading U.S. economic indicators fell by much more than expected in the month of July.
The Conference Board said its leading economic index slid by 0.6 percent in July after dipping by 0.2 percent in June. Economists had expected the index to decrease by 0.3 percent.
Meanwhile, the report said the index fell by 2.1 percent over the six-month period ending in July 2024, a smaller rate of decline than the 3.1 percent slump over the six-month period between July 2023 and January 2024.
'The LEI continues to fall on a month-over-month basis, but the six-month annual growth rate no longer signals recession ahead,' said Justyna Zabinska-La Monica, Senior Manager, Business Cycle Indicators, at The Conference Board.
Sector News
Steel stocks have shown a significant move to the upside on the day, resulting in a 1.5 percent jump by the NYSE Arca Steel Index.
Considerable strength is also visible among gold stocks, as reflected by the 1.5 percent gain being posted by the NYSE Arca Gold Bugs Index. The strength in the gold sector comes amid a modest increase by the price of the precious metal.
Energy stocks are also seeing notable strength despite a decrease by the price of crude oil, while most of the other major sectors are showing more modest gains.
Other Markets
In overseas trading, stock markets across the Asia-Pacific region turned in a mixed performance during trading on Monday. Japan's Nikkei 225 Index tumbled by 1.8 percent, while China's Shanghai Composite Index climbed by 0.5 percent.
Meanwhile, the major European markets have all moved to the upside on the day. While the French CAC 40 Index has advanced by 0.8 percent, the German DAX Index and the U.K.'s FTSE 100 Index are both up by 0.6 percent.
In the bond market, treasuries are seeing modest strength in morning trading. Subsequently, the yield on the benchmark ten-year note, which moves opposite of its price, is down by 1.5 basis points at 3.877 percent.
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