Stocks have seen a moderate rise during Monday's trading session, building on the robust gains from the previous week. The major indices have experienced fluctuations throughout the day but are currently all in positive territory.
The Dow Jones Industrial Average is up 183.32 points, or 0.5%, at 40,843.08. The Nasdaq Composite has gained 45.23 points, or 0.3%, to reach 17,676.95, while the S&P 500 has risen by 19.33 points, or 0.4%, to 5,573.58.
Ongoing upward momentum continues to drive stocks higher, with the major averages extending the trend observed over the past several sessions. Both the Nasdaq and the S&P 500 are on track for their eighth consecutive session of gains, effectively offsetting the significant decline seen earlier this month.
Investors' buying interest is bolstered by recent economic data that has alleviated concerns about the economic outlook, alongside growing confidence that the Federal Reserve will cut interest rates next month. CME Group's FedWatch Tool indicates a 75.5% probability of a quarter-point rate cut next month and a 24.5% likelihood of a half-point reduction.
In U.S. economic news, the Conference Board released a report showing that its leading U.S. economic indicators fell more than anticipated in July. The leading economic index decreased by 0.6% in July following a 0.2% drop in June, whereas economists had expected a 0.3% decline.
The report also highlighted that the index fell by 2.1% over the six-month period ending in July 2024, a smaller decline than the 3.1% drop recorded over the previous six-month period ending in January 2024.
"The LEI continues to fall on a month-over-month basis, but the six-month annual growth rate no longer signals a recession ahead," said Justyna Zabinska-La Monica, Senior Manager of Business Cycle Indicators at The Conference Board.
### Sector News
Steel stocks have experienced a notable surge, with the NYSE Arca Steel Index jumping by 1.5%. Significant strength is also observed in gold stocks, with the NYSE Arca Gold Bugs Index posting a 1.5% gain amid a modest increase in gold prices. Energy stocks are exhibiting notable strength despite a decline in crude oil prices, while most other major sectors are showing more modest gains.
### Other Markets
In overseas trading, stock markets across the Asia-Pacific region displayed a mixed performance on Monday. Japan's Nikkei 225 Index plunged by 1.8%, whereas China's Shanghai Composite Index rose by 0.5%.
In contrast, European markets have moved upward. The French CAC 40 Index advanced by 0.8%, while Germany's DAX Index and the U.K.'s FTSE 100 Index both increased by 0.6%.
In the bond market, treasuries are demonstrating modest strength in morning trading. Consequently, the yield on the benchmark ten-year note, which moves inversely to its price, has decreased by 1.5 basis points, now standing at 3.877%.
