(RTTNews) – After recovering from an initial move to the downside, stocks moved mostly higher over the course of the trading session on Monday. While the tech-heavy Nasdaq led the charge, the major averages all reached new record closing highs.
The major averages ended the day just off their highs of the session. The Nasdaq advanced 157.50 points or 0.7 percent to 22,788.98, the S&P 500 climbed 29.39 points or 0.4 percent to 6,693.75 and the narrower Dow inched up 66.27 points or 0.1 percent to 46,381.54.
Profit taking contributed to the initial weakness on Wall Street, with some traders looking to cash in on the recent strength in the markets.
Selling pressure waned shortly after the start of trading, however, as traders remain optimistic about the outlook for the markets amid expectations of further interest rate cuts by the Federal Reserve.
After cutting rates by a quarter point last Wednesday, the Fed is widely expected to lower rates by another quarter at each of its next two meetings in October and December.
Later this week, the Commerce Department is scheduled to release the Fed’s preferred readings on consumer price inflation, which could impact the outlook for rates.
A number of Fed officials, including Fed Chair Jerome Powell, are also scheduled to deliver remarks over the next several days.
Meanwhile, traders largely shrugged off news that President Donald Trump has signed a proclamation to restrict the entry into the U.S. of certain H-1B aliens as nonimmigrant workers.
The White House said new H-1B applicants would be required to pay a $100,000 fee, with the move intended to “curb abuses that displace U.S. workers and undermine national security.”
Sector News
Gold stocks saw substantial strength as the price of the precious metal surged to a new record high, with the NYSE Arca Gold Bugs Index jumping by 3.0 percent to its best closing level in over thirteen years.
Computer hardware and semiconductor stocks also showed strong moves to the upside, contributing to the advanced by the tech-heavy Nasdaq.
On the other hand, housing stocks saw significant weakness on the day, dragging the Philadelphia Housing Sector Index down by 1.5 percent to a one-month closing low.
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 shot up by 1.0 percent, while Hong Kong’s Hang Seng Index slid by 0.8 percent.
Meanwhile, European stocks moved mostly lower on the day. The German DAX Index fell by 0.5 percent and the French CAC 40 Index declined by 0.3 percent, although the U.K.’s FTSE 100 Index bucked the downtrend and inched up by 0.1 percent.
In the bond market, treasuries showed a lack of direction after trending lower over the past few sessions. The yield on the benchmark ten-year note, which moves opposite of its price, eventually ended the day up by less than a basis point at 4.143 percent.
Looking Ahead
Amid a lack of major U.S. economic data, trading on Tuesday may be impacted by remarks by several Fed officials, including Fed Chair Jerome Powell.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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