Stocks Show Substantial Rebound In Morning Trading - U.S. Commentary

(RTTNews) - After moving notably lower last week, stocks have shown a strong move back to the upside in early trading on Monday. The major averages are rebounding after ending last Friday's trading at their lowest closing levels in about four months.

Currently, the major averages are holding on to substantial gains. The Dow is up 276.85 points or 1.6 percent at 18,165.13, the Nasdaq is up 98.46 points or 2 percent at 5,144.83 and the S&P 500 is up 36.35 points or 1.7 percent at 2,121.53.

The rally on Wall Street comes on the heels of news the FBI has once again cleared Democratic presidential nominee Hillary Clinton of criminal charges related to her use of a private email server while Secretary of State.

"Based on our review, we have not changed our conclusions that we expressed in July with respect to Secretary Clinton," FBI Director James Comey wrote in a letter sent to members of Congress on Sunday.

Late last month, Comey revealed that the FBI re-opened its probe of Clinton after learning of the existence of new emails on a device obtained in connection with an unrelated investigation.

U.S. officials familiar with the case told the Washington Post the new emails were either personal or duplicative of those found earlier.

The news that Clinton has been cleared for a second time is seen as boosting her chances of emerging victorious on Election Day on Tuesday, which could be a positive for stocks.

JPMorgan analysts predicted the S&P 500 would jump by 3 percent from last Friday's close if Clinton wins the election.

Electronic storage stocks are seeing substantial strength in morning trading, with the NYSE Arca Disk Drive Index surging up by 4.7 percent. The index ended the previous session at a four-month closing low.

Datalink (DTLK) is leading the storage sector higher after the company agreed to be acquired by Insight Enterprises (NSIT) in a deal valued at approximately $258 million.

Steel, biotechnology, airline, and banking stocks are also seeing considerable strength, moving higher along with most of the other major sectors.

In overseas trading, stock markets across the Asia-Pacific region moved higher during trading on Monday. Japan's Nikkei 225 Index surged up by 1.6 percent, while Hong Kong's Hang Seng Index advanced by 0.7 percent.

The major European markets are also seeing significant strength on the day. While the German DAX Index has jumped by 1.7 percent, the U.K.'s FTSE 100 Index and the French CAC 40 Index are both up by 1.6 percent.

In the bond market, treasuries have moved to the downside amid the rally on Wall Street. Subsequently, the yield on the benchmark ten-year note, which moves opposite of its price, is up by 4 basis points at 1.832 percent.