Stocks came under pressure in early trading on Monday but have shown a significant turnaround over the course of the session. The major averages have all turned positive on the day, with the tech-heavy Nasdaq leading the rebound.
Currently, the major averages are off their highs of the session but holding on to gains. The Nasdaq is up 126.38 points or 1.0 percent at 13,110.19, the S&P 500 is up 21.14 points or 0.5 percent at 4,245.30 and the Dow is up 8.55 points or less than a tenth of a percent at 33,145.83.
Stocks initially came under pressure as treasury yields rebounded amid ongoing concerns about the outlook for interest rates.
Following the pullback seen last Friday, the yield on the benchmark ten-year note moved back to the upside, briefly peeking above the key 5 percent level.
The subsequent turnaround on Wall Street came as treasury yields turned lower as the day progressed, with the ten-year yield falling into negative territory.
Treasury yields turned lower after Pershing Square’s Bill Ackman said in a post on X, formerly known as Twitter, he has “covered out bond short.”
“There is too much risk in the world to remain short bonds at current long-term rates,” Ackman added. “The economy is slowing faster than recent data suggests.”
Overall trading activity remains somewhat subdued, however, with a lack of major U.S. economic data likely keeping some traders on the sidelines.
On Friday, the Commerce Department is due to release its report on personal income and spending, which includes readings on inflation said to be preferred by the Federal Reserve.
Traders are also likely to keep an eye on reports on new home sales, durable goods orders, pending home sales and initial jobless claims in the coming days.
The earnings season also continues to pick up steam this week, with a slew of big-name companies due to report their quarterly results.
Airline stocks have moved sharply higher over the course of the session, with the NYSE Arca Airline Index surging by 2.2 percent after hitting its lowest intraday level in over three years.
Significant strength has also emerged among housing stocks, as reflected by the 1.4 percent gain being posted by the Philadelphia Housing Sector Index.
Software and retail stocks have also moved notably higher as the day has progressed, while energy stocks have come under pressure amid a steep drop by the price of crude oil.
With crude for December delivery plunging $2.40 to $85.68 a barrel, the NYSE Arca Oil Index is down by 1.3 percent and the Philadelphia Oil Service Index is down by 1.0 percent.
In overseas trading, stock markets across the Asia-Pacific region moved mostly lower during trading on Monday. Japan’s Nikkei 225 Index slid by 0.8 percent, while China’s Shanghai Composite Index slumped by 1.5 percent.
Meanwhile, the major European markets turned in a mixed performance on the day. While the U.K.’s FTSE 100 Index fell by 0.4 percent, the German DAX Index closed just above the unchanged line and the French CAC 40 Index climbed by 0.5 percent.
In the bond, treasuries have shown a notable rebound after coming under pressure in early trading. As a result, the yield on the benchmark ten-year note, which moves opposite of its price, is down by 8.6 basis points at 4.838 percent.
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