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U.S. Stocks Moving Mostly Higher As Traders Hunt For Bargains

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Stocks have moved mostly higher in morning trading on Tuesday, regaining ground following the sell-off seen in the previous session. The major averages have all moved to the upside, with the Dow bouncing off a three-month closing low.

In recent trading, the major averages have reached new highs for the session. The Dow is up 188.53 points or 0.7 percent at 25,513.52, the Nasdaq is up 72.30 points or 1 percent at 7,719.32 and the S&P 500 is up 23.98 points or 0.9 percent at 2,835.85.

Bargain hunting is contributing to the strength on Wall Street, with traders picking up stocks at reduced levels on the heels of the steep drop seen in Monday.

The markets are also benefiting from optimism the U.S. and China will eventually reach a trade deal despite the retaliatory tariffs announced by China.

President Donald Trump has continued to express confidence the Chinese will yield to U.S. demands, claiming a trade agreement was 95 percent complete before China reneged.

Trump has repeatedly argued that the U.S. is in a stronger position than China in the negotiations, citing the recent strength of the U.S. economy.

"If you looked at the first quarter — which is always, historically, the worst quarter — we were at 3.2 percent. People were very surprised," Trump told reporters on Monday.

"Well, a lot of that was the tariffs that we were taking in from China," he added. "So we're in a very good position and I think it's only going to get better."

Trump also indicated that he would be meeting with Chinese President Xi Jinping at the G20 Summit in Japan late next month.

"We have a very good relationship. Maybe something will happen," Trump said. "But we're going to be meeting, as you know, at the G20 in Japan. And that will be, I think, probably, a very fruitful meeting."

Oil service stocks have shown a significant move to the upside in morning trading, rebounding following recent weakness in the sector.

The Philadelphia Oil Service Index has surged up by 2.6 percent after ending the previous session at its lowest closing level in over four months.

The rebound by oil service stocks comes as the price of crude oil for June delivery is climbing $0.61 to $61.65 a barrel on news of a drone attack on two oil pumping stations in Saudi Arabia.

Natural gas, semiconductor, and computer hardware stocks are also seeing considerable strength, moving higher along with most of the other major sectors.

In overseas trading, stock markets across the Asia-Pacific region moved mostly lower during trading on Tuesday. Japan's Nikkei 225 Index slid by 0.6 percent, while Hong Kong's Hang Seng Index tumbled by 1.5 percent.

Meanwhile, the major European markets are rebounding from recent weakness. While the German DAX Index has risen by 0.5 percent, the U.K.'s FTSE 100 Index is up by 1 percent and the French CAC 40 Index is up by 1.1 percent.

In the bond market, treasuries are showing a lack of direction after trending higher in recent sessions. As a result, the yield on the benchmark ten-year note, which moves opposite of its price, is up by less than a basis point at 2.409 percent.

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