U.S. Stocks Move Mostly Higher In Pre-Holiday Trading

(RTTNews) - Stocks have moved mostly higher during trading on Tuesday, extending the upward move seen over the two previous sessions. The major averages have all moved to the upside, with the tech-heavy Nasdaq leading the charge.

Currently, the major averages are just off their highs of the session. The Nasdaq is up 162.43 points or 0.8 percent at 19,927.31, the S&P 500 is up 37.23 points or 0.6 percent at 6,011.30 and the Dow is up 161.88 points or 0.4 percent at 43,068.83.

The strength on Wall Street comes as traders continue to pick up stocks at relatively reduced levels following last week's sell-off, which saw the Dow and the S&P 500 tumble to their lowest levels in over a month.

Stocks may also be benefiting from ongoing optimism about the outlook for the markets even after indications the Federal Reserve plans to cut interest rates less than previously estimated next year.

Overall trading activity remains somewhat subdued, however, as many traders are away from their desks ahead of the Christmas Day holiday on Wednesday.

The markets are also scheduled to close earlier than usual this afternoon, which is likely keeping some traders on the sidelines.

A lack of major U.S. economic data may also be contributing to light trading, as the release of reports on durable goods orders and new home sales was pushed forward to Monday after President Joe Biden signed an executive order closing the federal government for Christmas Eve.

Despite the advance by the broader markets, most of the major sectors are showing only modest moves on the day.

Brokerage stocks have shown a strong move to the upside, however, the NYSE Arca Broker/Dealer Index climbing by 1.2 percent.

Computer hardware, retail and semiconductor stocks are also seeing some strength, although buying interest appears somewhat subdued.

In overseas trading, stock markets across the Asia-Pacific region turned in a mixed performance during trading on Tuesday. While Japan's Nikkei 225 Index dipped by 0.3 percent, Hong Kong's Hang Seng Index jumped by 1.1 percent and China's Shanghai Composite Index surged by 1.3 percent.

Meanwhile, European stocks saw modest strength in light pre-holiday trading. The U.K.'s FTSE 100 Index climbed by 0.4 percent and the French CAC 40 Index inched up by 0.1 percent, while the German markets were closed on the day.

In the bond market, treasuries are extending the notable downward move seen in the previous session. As a result, the yield on the benchmark ten-year note, which moves opposite of its price, is up by 2.6 basis points at 4.625 percent.