US stocks continue to strengthen after an early rally

US stocks continue to strengthen after an early rally

After showing strong upward movement early in the session, stocks continue to gain significantly in Monday afternoon trading. With the move higher, the major averages extend the significant rebound seen last Friday.

In recent trading, the Nasdaq and S&P 500 hit new highs for the session. While the Nasdaq is up 249.85 points or 2.2% at 11,390.28, the S&P 500 is up 59.91 points or 1.5% at 4,032.52 and the Dow Jones is up. up 336.83 points or 1.0% to 33,712.32.

Tech stocks again led the advance, helping lift the Nasdaq to its best intraday level in more than a month.

Within the technology sector, semiconductor stocks performed particularly strongly, pushing the Philadelphia Semiconductor Index up 4.9% to a five-month closing high.

Chipmaker Advanced Micro Devices (AMD) posts a remarkable gain after Barclays upgraded its rating on the company’s overweight shares from equal weight.

Significant strength also remains visible among computer hardware stocks, as evidenced by the 3.5% rise in the NYSE Arca Computer Hardware Index.

Network and software stocks are also seeing considerable strength, while banking and transportation stocks are showing some of the best performance outside of the technology sector.

The prolonged rally on Wall Street comes even as traders eagerly await earnings releases from a number of major companies this week.

General Electric (GE), Johnson & Johnson (JNJ), Verizon (VZ), Microsoft (MSFT), AT&T (T), Boeing (BA), IBM Corp. (IBM), Tesla (TSLA), Intel (INTC) and American Express (AXP) are just some of the companies due to release their quarterly results in the coming days.

Reports on durable goods orders, fourth quarter GDP, new home sales, and personal income and spending are also expected to draw attention later in the week.

In foreign trade, stocks markets in the Asia-Pacific region rose mainly on Monday, with several markets closed for the Lunar New Year. Japan’s Nikkei 225 index jumped 1.3%, while Australia’s S&P/ASX 200 index jumped 0.1%.

Major European markets also moved higher on the day. While Britain’s FTSE 100 index edged up 0.2%, Germany’s DAX index and France’s CAC 40 index both rose 0.5%.

In the bond market, treasury bills continue to lose ground, extending the decline seen in the previous two sessions. Subsequently, the yield on the benchmark 10-year note, which moves opposite to its price, rose 4.4 basis points to 3.528%.

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