With traders going bargain hunting following recent weakness, stocks have shown a strong upward move over the course of morning trading on Monday. The major averages have climbed firmly into positive territory after falling sharply in recent sessions.
The notable strength on Wall Street comes as traders are picking up stocks at reduced levels following the recent downward trend, which pulled the major averages down to four-month closing lows on Friday.
Steel stocks have shown a particularly strong move back to the upside, with the NYSE Arca Steel Index surging up by 2.8 percent. The gain by the index comes after it ended the previous session at a seven-month closing low.
Considerable strength has also emerged among railroad stocks, as reflected by the 2.3 percent gain being posted by the Dow Jones Railroads Index. Greenbrier (GBX) and Trinity Industries (TRN) are turning in two of the sector's best performances.
Health insurance, computer hardware, and oil service stocks are also posting notable gains, moving higher along with most of the major sectors.
The major averages have seen some further upside in recent trading, reaching new highs for the session. The Dow is up 109.29 points or 0.9 percent at 12,478.67, the Nasdaq is up 39.76 points or 1.4 percent at 2,818.55 and the S&P 500 is up 15.26 points or 1.2 percent at 1,310.48.
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