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Tech Stocks Leading Significant Rebound On Wall Street

wallstreet aug28 14sep20 lt

Stocks have shown a strong move to the upside in morning trading on Monday, regaining ground following the sharp drop seen last week. The major averages have all moved notably higher, with the tech-heavy Nasdaq posting a particularly strong gain.

The major averages have seen further upside in recent trading, reaching new highs for the session. The Dow is up 396.06 points or 1.4 percent at 28,061.70, the Nasdaq is up 252.96 points or 2.3 percent at 11,106.51 and the S&P 500 is up 59.48 points or 1.8 percent at 3,400.45.

The strength on Wall Street partly reflects a rebound by technology stocks, which are recovering after leading the markets lower last week.

The significant advance by the Nasdaq comes after the tech-heavy index plunged by 4.1 percent last week in its worst week since March.

Apple (AAPL) has been a key driver of the markets in recent sessions and is currently up by 2.9 percent after ending the previous session at its lowest closing level in a month.

Shares of Nvidia (NVDA) are also seeing considerable strength after the graphics chip maker announced a $40 billion acquisition of chip designer Arm Holdings.

Oracle (ORCL) is also posting a standout gain amid reports the business software giant has edged out rival Microsoft (MSFT) in negotiations for the U.S. operations of TikTok.

Positive sentiment has also been generated in reaction to news that AstraZeneca (AZN) has resumed a late-stage clinical trial of its coronavirus vaccine.

Gold stocks have shown a substantial move to the upside on the day, driving the NYSE Arca Gold Bugs Index up by 3.5 percent.

The rally by gold stocks comes amid a sharp increase by the price of the precious metal, with gold for December delivery spiking $19.90 to $1,967.80 an ounce.

Considerable strength is also visible among biotechnology stocks, as reflected by the 3.2 percent jump by the NYSE Arca Biotechnology Index.

Shares of Immunomedics (IMMU) are soaring after the cancer drug maker agreed to be acquired by Gilead Sciences (GILD) is a deal valued at $21 billion.

Banking, software, semiconductor and healthcare stocks are also seeing notable strength, moving higher 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 advanced by 0.7 percent, while China's Shanghai Composite Index rose by 0.6 percent.

Meanwhile, the major European markets have turned mixed on the day. While the U.K.'s FTSE 100 Index has edged down by 0.1 percent, the German DAX Index is just above the unchanged line and the French CAC 40 Index is up by 0.5 percent.

In the bond market, treasuries have shown a lack of direction over the course of the morning. As a result, the yield on the benchmark ten-year note, which moves opposite of its price, is down by less than a basis point at 0.663 percent.

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