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U.S. Stocks Extending Early Rebound From Yesterday's Steep Losses

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After moving higher early in the session, stocks have seen further upside over the course of the trading day on Tuesday. With the strong upward move, the major averages are partly offsetting the steep losses posted in the previous session.

Currently, the major averages are at or near their highs of the session. The Dow is up 331.54 points or 1.3 percent at 25,656.53, the Nasdaq is up 110.83 points or 1.5 percent at 7,757.85 and the S&P 500 is up 36.45 points or 1.3 percent at 2,848.32

Bargain hunting has contributed to the rebound on Wall Street, with traders picking up stocks at reduced levels following the sell-off 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."

Sector News

Oil service stocks have moved sharply higher over the course of the trading session, driving the Philadelphia Oil Service Index up by 3.6 percent. The index ended 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 $0.86 to $61.90 a barrel on news of a drone attack on two oil pumping stations in Saudi Arabia.

Substantial strength has also emerged among natural gas stocks, as reflected by the 2.6 percent spike by the NYSE Arca Natural Gas Index. An increase by the price of natural gas is contributing to the strength in the sector.

Semiconductor stocks are also seeing considerable strength after turning in some of the market's worst performances on Monday, with the Philadelphia Semiconductor Index surging up by 2.2 percent.

Tobacco, software, steel and transportation stocks are also showing strong moves to the upside, while gold stocks are bucking the uptrend after being among the few sectors to move higher in the previous session.

Other Markets

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 rebounded following recent weakness. While the French CAC 40 Index surged up by 1.5 percent, the U.K.'s FTSE 100 Index and the German DAX Index jumped by 1.1 percent and 1 percent, respectively.

In the bond market, treasuries have moved lower over the course of the session. As a result, the yield on the benchmark ten-year note, which moves opposite of its price, is up by 2.1 basis points at 2.426 percent.

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