Stocks have generally advanced during Tuesday's trading session, building on gains from the last two days. The key indices have all risen, with the Nasdaq, which is heavily weighted towards technology, leading the way.
Currently, the major indices are hovering just below their session-high levels. The Nasdaq has climbed by 162.43 points, or 0.8%, to 19,927.31. Meanwhile, the S&P 500 has increased by 37.23 points, or 0.6%, to 6,011.30, and the Dow has risen by 161.88 points, or 0.4%, to 43,068.83.
The market's strength stems from investors acquiring stocks at lower prices following last week's downturn, which led the Dow and the S&P 500 to hit their lowest points in over a month. Additionally, there is continued optimism about market prospects, especially after indications that the Federal Reserve may implement milder interest rate cuts than previously anticipated next year.
Overall, trading activity has been somewhat muted, as many traders are out of the office in anticipation of the Christmas Day holiday on Wednesday. Furthermore, today's trading is ending earlier than usual, which seems to be keeping some investors on the sidelines.
Adding to the light trading volume is the absence of significant U.S. economic data. Reports on durable goods orders and new home sales were rescheduled to Monday after President Joe Biden issued an executive order to close the federal government for Christmas Eve.
Despite the wider market's upward momentum, most key sectors have seen only minor changes today. Notably, brokerage stocks have experienced a strong upward movement, with the NYSE Arca Broker/Dealer Index rising by 1.2%.
There is also some noticeable strength in the sectors of computer hardware, retail, and semiconductors, although buying interest remains fairly modest.
In international markets, the Asia-Pacific region exhibited mixed results during Tuesday's session. Japan's Nikkei 225 Index fell by 0.3%, whereas Hong Kong's Hang Seng Index rose by 1.1%, and China's Shanghai Composite Index increased by 1.3%.
Meanwhile, European stocks experienced modest gains in light pre-holiday trading. The U.K.'s FTSE 100 Index advanced by 0.4%, and France's CAC 40 Index edged up by 0.1%, while German markets remained closed for the day.
In the bond market, U.S. Treasury yields continued to rise, following a notable decrease in the previous session. Consequently, the yield on the benchmark ten-year note, which moves inversely to its price, advanced by 2.6 basis points to 4.625%.
The material has been provided by InstaForex Company -
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