U.S. Stocks Regaining Ground Following Recent Weakness

Stocks have moved mostly higher in morning trading on Tuesday, regaining ground following the sell-off seen in the previous session. The major averages have all moved to the upside but remain well off their recent highs.

Currently, the major averages all remain firmly positive. The Dow is up 364.21 points or 1 percent at 35,296.37, the Nasdaq is up 98.05 points or 0.7 percent at 15,078.99 and the S&P 500 is up 30.80 points or 0.7 percent at 4,598.82.

Bargain hunting has contributed to the strength on Wall Street, as traders pick up stocks at somewhat reduced levels on the heels of recent weakness.

The steep drop seen during trading on Monday dragged the tech-heavy Nasdaq down to its lowest closing level in over two months.

Chipmaker Micron Technology (MU) has help lead a rebound by tech stocks after reporting better than expected fiscal first quarter results and providing upbeat guidance.

Shares of Nike (NKE) and Rite Aid (RAD) are also seeing significant strength after the companies reported quarterly results that beat expectations.

Airline stocks have moved sharply higher in morning trading, with the NYSE Arca Airline Index soaring by 5.2 percent.

A rebound by the price of crude oil is also contributing to considerable strength among energy stocks. Crude for February delivery is jumping $1.81 to $70.41 a barrel after plunging $2.11 to $68.61 a barrel on Monday.

Reflecting the strength in the energy sector, the Philadelphia Oil Service Index is up by 4 percent and the NYSE Arca Oil Index is up by 2.6 percent.

Financial, steel and computer hardware 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 notably higher during trading on Tuesday. Japan’s Nikkei 225 Index surged by 2.1 percent, while China’s Shanghai Composite Index advanced by 0.9 percent.

The major European markets have also shown strong moves back to the upside on the day. While the German DAX Index has jumped by 1.2 percent, the U.K.’s FTSE 100 Index and the French CAC 40 Index are both up by 1.2 percent.

In the bond market, treasuries have moved notably lower amid the rebound on Wall Street. Subsequently, the yield on the benchmark ten-year note, which moves opposite of its price, is up by 5.5 basis points at 1.474 percent.

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