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Stocks Move Mostly Higher In Morning Trading - U.S. Commentary


Following the mixed performance seen in the previous session, stocks have moved mostly higher in morning trading on Tuesday. The major averages have all moved to the upside, with the tech-heavy Nasdaq rebounding strongly.

Currently, the Nasdaq is outperforming the other major sectors. While the Nasdaq is up 53.32 points or 0.7 percent at 7,382.17, the Dow is up 49.97 points or 0.2 percent at 25,511.67 and the S&P 500 is up 8.65 points or 0.3 percent at 2,746.96.

The strength on Wall Street comes as stocks continue to recover from the sell-off seen in October, which was one of the worst months for the markets in years.

However, traders seem reluctant to make more significant moves amid uncertainty about the outcome of today's highly anticipated midterm elections.

The elections will decide control of both the House and the Senate and could have a major impact on President Donald Trump's ability to enact his pro-business agenda.

Democrats are seen with an easier path to retaking the House than the Senate but could still be a significant thorn in Trump's side with control of just the lower chamber.

Traders also continue to look ahead to the Federal Reserve's monetary policy announcement on Thursday, with the central bank expected to leave interest rates unchanged but potentially provide clues about future rate hikes.

Most of the major sectors are showing only modest moves on the day, although semiconductor stocks are seeing notable strength after moving notably lower in the two previous sessions

Reflecting the strength in the semiconductor sector, the Philadelphia Semiconductor Index has advanced by 1.1 percent on the day.

On the other hand, gold stocks have moved to the downside on the day, with a modest decrease by the price of the precious metal weighing on the sector.

In overseas trading, stock markets across the Asia-Pacific region moved mostly higher during trading on Tuesday. Japan's Nikkei 225 Index jumped by 1.1 percent, while Hong Kong's Hang Seng Index advanced by 0.7 percent.

Meanwhile, the major European markets have moved to the downside on the day. While the U.K.'s FTSE 100 Index is down by 0.8 percent, the French CAC 40 Index is down by 0.4 percent and the German DAX Index is down by 0.1 percent.

In the bond market, treasuries are showing a lack of direction amid a quiet day on the U.S. economic front. Subsequently, the yield on the benchmark ten-year note, which moves opposite of its price, is up by less than a basis point at 3.203 percent.

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