Stocks have moved mostly higher in morning trading on Monday, adding to the strong gains posted in the previous session. With the continued upward move, the major averages have reached their best intraday levels in two months.
Currently, the major averages are just off their highs of the session. The Dow is up 139.88 points or 0.6 percent at 24,971.05, the Nasdaq is up 51.80 points or 0.7 percent at 7,454.69 and the S&P 500 is up 12.87 points or 0.5 percent at 2,740.59.
Buying interest has been generated amid easing trade tensions ahead of a second round of trade talks between the U.S. and China this week.
Ahead of the meeting, President Donald Trump indicated in a post on Twitter that he is working with Chinese President Xi Jinping to get Chinese telecom equipment maker ZTE Corp. "back into , fast."
ZTE has been crippled by a ban on U.S. supplies to its business, and sources briefed on the matter told Reuters that China has demanded the issue be resolved as a prerequisite for broader trade negotiations.
In a subsequent tweet, Trump expressed optimism about trade talks with China despite claiming past negotiations have been one-sided in favor of Beijing.
"China and the United States are working well together on trade, but past negotiations have been so one sided in favor of China, for so many years, that it is hard for them to make a deal that benefits both countries," Trump tweeted. "But be cool, it will all work out!"
Overall trading activity is somewhat subdued, however, with a lack of major U.S. economic data keeping some traders on the sidelines.
Reports on retail sales, homebuilder confidence, housing starts, and industrial production are likely to attract attention in the coming days.
Semiconductor stocks have shown a significant move to the upside in morning trading, driving the Philadelphia Semiconductor Index up by 1.7 percent. The index has reached its best intraday level in well over a month.
NXP Semiconductor (NXPI) is posting standout gain after a report from Bloomberg said Chinese regulators have restarted their review of Qualcomm's (QCOM) application to acquire the chipmaker.
Biotechnology, telecom, and computer hardware stocks are also seeing considerable strength, moving higher along with most of the other major sectors.
In overseas trading, stock across the Asia-Pacific region moved mostly higher during trading on Monday. Japan's Nikkei 225 Index climbed by 0.5 percent, while Hong Kong's Hang Seng Index shot up by 1.4 percent.
Meanwhile, the major European markets are seeing modest weakness on the day. While the French CAC 40 Index is down by 0.1 percent, the German DAX Index and the U.K.'s FTSE 100 Index are both down by 0.2 percent.
In the bond market, treasuries are seeing moderate weakness amid the strength on Wall Street. As a result, the yield on the benchmark ten-year note, which moves opposite of its price, is up by 2.2 basis points at 2.993 percent.
by P2PNews Staff Writer