Major Averages Move Sharply Higher At The Open

(RTTNews) - Stocks moved sharply higher at the start of trading on Tuesday, regaining some ground after seeing significant weakness last week. The major averages jumped firmly into positive territory but have not seen much follow-through on the initial upward move.

The initial strength on Wall Street was partly in reaction to strength among Chinese stocks, which surged higher in the latter part of the trading day.

China's Shanghai Composite Index jumped by 2.9 percent on the day, contributing to a rally in other overseas markets.

The late-day strength in the Chinese market suggests state intervention despite recent reports indicating the government abandoned attempts to boost the stock market through large-scale share purchases.

Semiconductor stocks are seeing considerable strength in early trading, resulting in a 2.9 percent jump by the Philadelphia Semiconductor Index. SunEdison (SUNE) and ON Semiconductor (ON) are posting standout gains.

Steel, railroad, airline, and software stocks are also seeing early strength, moving higher along with most of the other major sectors.

Currently, the major averages are holding on to strong gains but are off their highs for the young session. The Dow is up 263.23 points or 1.6 percent at 16,365.61, the Nasdaq is up 84.11 points or 1.8 percent at 4,768.03 and the S&P 500 is up 29.36 points or 1.5 percent at 1,950.58.