Stocks saw significant strength during trading on Monday, regaining some ground after showing a notable move to the downside in recent weeks. The markets benefited from bargain hunting but remain sharply lower for the month of May.
Most of the major sectors showed notable upward moves on the day, reflecting broad based buying interest in the markets following the recent weakness.
Oil service stocks posted particularly strong gains, benefiting from a rebound by the price of crude oil. With crude for June delivery climbing $1.09 to $92.57 a barrel after ending Friday's trading at a six-month low, the Philadelphia Oil Service Index surged up by 3.9 percent.
Significant strength was also visible among steel stocks, as reflected by the 4 percent gain posted by the NYSE Arca Steel Index. The gain by the index came after it ended the previous session at a seven-month closing low.
Gold stocks also saw considerable strength, driving the NYSE Arca Gold Bugs Index up by 3.4 percent. Chemical, biotechnology, housing, and computer hardware stocks also posted standout gains.
The major averages saw further upside going into the close, ending the session just off their highs. The Dow rose 135.10 points or 1.1 percent to 12,504.48, the Nasdaq jumped 68.42 points or 2.5 percent to 2,847.21 and the S&P 500 climbed 20.77 points or 1.6 percent to 1,315.99.
by RTT Staff Writer
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