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U.S. Stocks Close Sharply Higher After Rally In Europe

wallstreet sept17 28sep20 lt

Stocks moved sharply higher during trading on Monday, extending the strong upward move seen in the previous session. The major averages all climbed firmly into positive territory amid broad based strength on Wall Street.

The Dow jumped 410.10 points or 1.5 percent to 27,584.06, the Nasdaq spiked 203.96 points or 1.9 percent to 11,117.53 and the S&P 500 surged up 53.14 points or 1.6 percent to 3,351.60.

The strength on Wall Street came following a rally seen in the European markets, as traders picked up stocks at relatively reduced levels.

Traders seem to shrug off recent concerns about a surge in coronavirus cases and uncertainty about the U.S. presidential election.

The markets may also have benefitted from optimism about a new coronavirus bill after House Speaker Nancy Pelolsi said a new package is still possible. House Democrats plan to unveil a new $2.4 trillion coronavirus relief bill.

The price tag for the bill is $1 trillion less than a stimulus package the House passed back in May but may still be too high for Republicans.

Housing stocks showed a substantial move to the upside on the day, driving the Philadelphia Housing Sector Index up by 3.7 percent.

Significant strength was also visible among oil service stocks, as reflected by the 3 percent jump by the Philadelphia Oil Service Index.

The rally by oil service stocks came amid an increase by the price of crude oil, with crude for November delivery rising $0.35 to $40.60 a barrel.

Financial, semiconductor and networking stocks also saw considerable strength, moving higher along with most of the other major sectors.

In overseas trading, stock markets across the Asia-Pacific region turned in a mixed performance during trading on Monday. Japan's Nikkei 225 Index jumped by 1.3 percent, while China's Shanghai Composite Index edged down by 0.1 percent.

Meanwhile, the major European markets have all moved sharply higher on the day. While the German DAX Index has spiked by 2.9 percent, the French CAC 40 Index is up by 2.2 percent and the U.K.'s FTSE 100 Index is up by 1.7 percent.

In the bond market, treasuries climbed back near the unchanged line after seeing initial weakness. Subsequently, the yield on the benchmark ten-year note, which moves opposite of its price, inched up by less than a basis point to 0.663 percent.

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