Stocks experienced upward movement on Monday, with key indices rising after a narrowly mixed conclusion to last Friday's session. The Dow Jones managed a modest gain after seven consecutive declines.
Currently, the Dow is up by 28.03 points, or 0.1%, standing at 43,856.09. The Nasdaq has climbed 120.95 points, or 0.6%, to 20,047.67, and the S&P 500 has increased by 20.01 points, or 0.3%, reaching 6,071.10.
The positive sentiment on Wall Street may stem from optimism about the Federal Reserve's upcoming decision on interest rates scheduled for Wednesday. Expectations are high that the Fed will persist in lowering rates, with the CME Group's FedWatch Tool indicating a 99.1% likelihood of a 25 basis point reduction.
Investors are closely monitoring the Fed's statement and the latest economic forecasts, particularly concerning interest rate projections. However, enthusiasm for buying remains somewhat tempered due to persistent inflation concerns, suggesting the Fed might pace its rate cuts more cautiously next year.
In economic updates from the U.S., the Federal Reserve Bank of New York reported a significant decline in its measure of regional manufacturing activity for December. The general business conditions index plunged to 0.2 from November's 31.2, yet a positive figure still signifies growth. Forecasts had anticipated a decrease to 12.0.
Looking towards the future, despite a drop in the index for expected business activity to 24.6 in December from November's 33.2, the New York Fed noted that firms remain relatively optimistic about continued improvements.
Sector-wise, networking stocks have maintained their upward trajectory, with the NYSE Arca Networking Index advancing by 1.4% to an intraday peak. Semiconductor stocks are also experiencing notable gains, as illustrated by the Philadelphia Semiconductor Index's 1.4% rise. Broadcom (AVGO) is building on last Friday's surge, and Micron (MU) is achieving significant gains following a positive forecast from JPMorgan for its upcoming fiscal first-quarter results.
Biotechnology stocks are enjoying modest strength, although oil and gold stocks have recorded noticeable declines.
Internationally, Asia-Pacific markets generally trended lower on Monday. Japan's Nikkei 225 Index closed slightly under unchanged, China's Shanghai Composite Index dipped by 0.2%, and Hong Kong's Hang Seng Index fell by 0.9%.
European markets also slid, with France's CAC 40 Index down by 0.7%, while Germany's DAX Index and the U.K.'s FTSE 100 Index each declined by 0.3%.
In the bond market, U.S. Treasuries are showing mild strength after a period of downward pressure. This has brought the yield on the 10-year note, which inversely correlates with its price, down by 1.2 basis points to 4.387%.
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