**Market Update: Stocks Show Upward Momentum**
Stocks exhibited a lack of clear direction in early trading on Monday but have generally moved higher as the session progressed. The major indexes have surged firmly into positive territory, building on the impressive gains recorded last week.
As it stands, the key averages are hovering near their peak levels for the day. The Dow has risen by 183.87 points, or 0.5%, to 40,843.63. The Nasdaq has gained 104.26 points, or 0.6%, to reach 17,735.98, and the S&P 500 is up by 29.46 points, or 0.5%, at 5,583.71.
The strength on Wall Street can be attributed to ongoing upward momentum, as the major indexes continue the trend seen over the past several sessions. Both the Nasdaq and the S&P 500 are on track for their eighth consecutive session of gains, effectively erasing a steep drop experienced earlier in the month.
Investor confidence is also buoyed by recent data, which has alleviated some concerns about the economic outlook and has bolstered the expectation that the Federal Reserve will reduce interest rates next month. According to CME Group's FedWatch Tool, there is a 75.5% probability of a quarter-point rate cut and a 24.5% chance of a half-point cut.
Looking ahead, the minutes from the Federal Reserve's latest monetary policy meeting, along with remarks from Fed Chair Jerome Powell and other officials at the upcoming Jackson Hole Economic Symposium, will provide further insight into the outlook for interest rates.
"September is being tipped as the month for that first Fed cut after inflation finally dropped below 3%," said Danni Hewson, AJ Bell's Head of Financial Analysis. "The big questions now are how significant the first cut will be, and whether it might be the only one this year."
In U.S. economic news, the Conference Board released a report indicating its reading on leading U.S. economic indicators fell sharply more than expected in July. The leading economic index decreased by 0.6% in July after a 0.2% dip in June, contrary to economists' expectations of a 0.3% decline.
Notably, the index fell by 2.1% over the six-month period ending in July 2024, a smaller drop compared to the 3.1% decline over the preceding six months ending January 2024.
"The LEI continues to decline on a month-over-month basis, but the six-month annual growth rate no longer signals a recession ahead," stated Justyna Zabinska-La Monica, Senior Manager of Business Cycle Indicators at The Conference Board.
**Sector Highlights**
Gold stocks have experienced a significant rise, propelling the NYSE Arca Gold Bugs Index up by 1.9% to a two-year high. This surge comes as gold prices marginally increased, with December delivery gold inching up $4 to $2,541.80 per ounce.
Biotechnology stocks have also shown notable strength, as evidenced by the NYSE Arca Biotechnology Index's 1.5% gain, marking its highest intraday level in nearly three years.
Housing, steel, and natural gas stocks are enjoying considerable strength, while most other major sectors are logging more modest gains.
**Global Markets**
Overseas, stock markets across the Asia-Pacific region delivered a mixed performance on Monday. Japan's Nikkei 225 Index fell by 1.8%, while China's Shanghai Composite Index increased by 0.5%.
In Europe, all major markets moved higher. The French CAC 40 Index advanced by 0.7%, the U.K.'s FTSE 100 Index rose by 0.6%, and Germany's DAX Index increased by 0.5%.
In the bond market, treasuries have moved higher on the back of optimism about interest rates. Consequently, the yield on the benchmark ten-year note, which moves inversely to its price, has fallen by 3.0 basis points to 3.862%.
