Stocks moved sharply higher during trading on Monday, more than offsetting the weakness seen in the previous session. With the upward move on the day, the major averages reached their best closing levels in a month.
The major averages ended the day near their highs of the session. The Dow jumped 465.83 points or 1.7 percent to 28,148.64, the Nasdaq spiked 257.47 points or 2.3 percent to 11,332.49 and the S&P 500 surged up 60.16 points or 1.8 percent to 3,408.60.
The rally on Wall Street came amid positive reports about President Donald Trump’s health after he was rushed to Walter Reed hospital on Friday.
In a video posted on Twitter late Sunday, Trump said he is “getting great reports from the doctors” regarding his battle with the coronavirus.
Trump revealed in a tweet late in the trading day that he will be releases from the hospital at 6:30 pm ET.
“Feeling really good! Don’t be afraid of Covid. Don’t let it dominate your life. We have developed, under the Trump Administration, some really great drugs & knowledge. I feel better than I did 20 years ago!” Trump tweeted.
Buying interest was also generated following the release of a report from the Institute for Supply Management showing activity in the U.S. service sector unexpectedly grew at a faster rate in the month of September’
The ISM said its services PMI rose inched up 57.8 in September from 56.9 in August, with a reading above 50 indicating growth in the service sector. Economists had expected the index to edge down to 56.3.
Biotechnology stocks showed a substantial move to the upside on the day, driving the NYSE Arca Biotechnology Index up by 3.8 percent.
Shares of MyoKardia (MYOK) moved sharply higher after the biotechnology company agreed to be acquired by Bristol Myers Squibb (BMY) for $225 per share in cash.
Biotech company Eidos Therapeutics (EIDX) also saw significant strength after BridgeBio (BBIO) agreed to acquire all of the outstanding common stock of Eidos it does not already own.
Considerable strength was also visible among natural gas stocks, as reflected by the 3.6 percent spike by the NYSE Arca Natural Gas Index.
Steel, oil service, and semiconductor stocks also saw 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 jumped by 1.2 percent, while Hong Kong’s Hang Seng Index surged up by 1.3 percent.
The major European markets also moved to the upside on the day. While the German DAX Index spiked by 1.1 percent, the French CAC 40 Index advanced by 1 percent the U.K.’s FTSE 100 Index rose by 0.7 percent.
In the bond market, treasuries moved notably lower amid the rally on Wall Street. Subsequently, the yield on the benchmark ten-year note, which moves opposite of its price, climbed by 6.6 basis points to 0.762 percent.
A report on the U.S. trade deficit may attract attention on Tuesday along with a speech by Federal Reserve Chairman Jerome Powell.
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