After moving sharply higher in early trading, stocks have continued to perform well over the course of the trading day on Monday. The markets have benefited from a positive reaction to some better than expected economic data.
The major averages have pulled back off their best levels of the day in recent trading but remain firmly positive. The Dow is up 161.46 points or 1.1 percent at 15,231.64, the Nasdaq is up 39.49 points or 1.2 percent at 3,463.05 and the S&P 500 is up 16.34 points or 1 percent at 1,643.07.
The 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 climbed above 50 for the first time since April of 2006 and reached its highest level since hitting 54 in March of 2006. A reading above 50 indicates that more builders view sales conditions as good than poor.
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 the index 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.
Daiwa Capital Markets' Chris Scicluna said, "All eyes will turn to the post-meeting press conference where Bernanke will unveil the Fed's latest economic projections - relevant for the timing of the first rate hike - and hopefully provide greater clarity on the likely timeframe for tapering asset purchases."
Sector News
Housing stocks are turning in some of the market's best performances on the heels of the better than expected homebuilder confidence data. The Philadelphia Housing Sector Index is up by 2 percent, climbing further off last Thursday's more than one-month closing low.
Within the housing sector, Standard Pacific (SPF), PulteGroup (PHM), and Toll Brothers (TOL) are posting standout gains.
Considerable strength is also visible among brokerage stocks, as reflected by the 1.9 percent gain being posted by the NYSE Arca Broker/Dealer Index. Nomura Holdings (NMR) has helped lead the sector higher, surging up by 4.6 percent.
Semiconductor stocks have also shown a strong move to the upside on the day, driving the Philadelphia Semiconductor Index up by 1.9 percent. With the gain, the index has climbed toward the high end of a recent trading range.
Oil service, natural gas, software, and internet stocks are also posting strong gains in mid-day trading, moving higher along with most of the other major sectors.
Other Markets
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 also moved to the upside on the day. While the U.K.'s FTSE 100 Index rose by 0.4 percent, the German DAX Index and the French CAC 40 Index ended the day up by 1.1 percent and 1.5 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 1.4 basis points at 2.14 percent.
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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.