With traders reacting positively to some upbeat economic data, stocks have moved sharply higher in early trading on Monday. The major averages have climbed firmly into positive territory, recovering from the notable move to the downside that was seen last week.
The major averages are currently posting strong gains, near their highs for the young session. The Dow is up 164.12 points or 1.1 percent at 15,234.30, the Nasdaq is up 40.11 points or 1.2 percent at 3,363.66 and the S&P 500 is up 16.72 points or 1 percent at 1,643.45.
The early strength on Wall Street comes on the heels of the release of a pair of upbeat economic reports, including a report from the National Association of Home Builders showing that its reading on homebuilder confidence jumped to a seven-year high in June.
The report said the NAHB/Wells Fargo Housing Market Index soared to 52 in June from 44 in May. Economists had been expecting the index to show a much more modest increase to a reading of 45.
With the much bigger than expected increase, the index reached its highest level since hitting 54 in March of 2006.
A separate report from the New York Federal Reserve showed that its reading on regional manufacturing rose by much more than expected in June.
The New York Fed said its general business conditions index rose to a positive 7.8 in June from a negative 1.4 in May, with a positive reading indicating an increase in regional manufacturing activity. Economists had expected to climb to a positive 0.5.
Traders also seem to be expressing some optimism about the outcome of the Federal Reserve's two-day monetary policy meeting that ends on Wednesday.
While the Fed is not expected to announce an immediate change in policy, traders will be looking for any signals reading when the central bank will scale back its stimulus program.
Housing stocks have shown a strong upward move on the heels of the NAHB report, with the Philadelphia Housing Sector Index surging up by 2.5 percent. The gain is lifting the index further off the more than one-month closing low it set last Thursday.
Semiconductor, brokerage, and natural gas stocks have also moved sharply higher in early trading, moving to the upside along with most of the other major sectors.
In overseas trading, stock markets across the Asia-Pacific region moved mostly higher during trading on Monday. Japan's Nikkei 225 Index surged up by 2.7 percent, while Hong Kong's Hang Seng Index advanced by 1.2 percent.
The major European markets have also moved to the upside on the day. While the U.K.'s FTSE 100 Index has risen by 0.9 percent, the German DAX Index and the French CAC 40 Index are up by 1.5 percent and 1.8 percent, respectively.
In the bond market, treasuries are seeing modest weakness on the heels of the upbeat economic data. As a result, the yield on the benchmark ten-year note, which moves opposite of its price, is up by 1.8 basis points at 2.144 percent.
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Business News
June 05, 2026 16:18 ET A busy week for economic news flow saw a slew of reports being released that reflected the trends in the U.S. labor market. In Europe, economic growth and inflation data gained attention as the European Central Bank and Bank of England head for policy session later in the month. In Asia, the monetary policy session of the Indian central bank was in focus as the country, a major oil importer, reels under the pressures of a weaker rupee and rising inflation.