Stocks have moved mostly higher during trading on Monday, regaining ground following the steep drop seen last week. The major averages have all shown notable moves to the upside on the day.
Currently, the Dow is up 426.22 points or 1.6 percent at 26,927.82, the Nasdaq is up 33.06 points or 0.3 percent at 10,944.65 and the S&P 500 is up 42.09 points or 1.3 percent at 3,312.05.
The rebound on Wall Street comes as some traders go bargain hunting, looking to pick up stocks at reduced levels following the pullback seen last week.
With the steep drop seen last Friday, the Dow slid to a three-month closing low, while the Nasdaq and the S&P 500 dropped to their lowest closing levels in over a month.
For the week, the Dow plummeted by 6.5 percent, and the Nasdaq and S&P 500 plunged by 5.5 percent and 5.6 percent, respectively.
Adding to the positive sentiment, the Institute For Supply Management released a report showing growth in U.S. manufacturing activity accelerated by much more than expected in the month of October.
The ISM said its purchasing managers index climbed to 59.3 in October from 55.4 in September, with a reading above 50 indicating growth in manufacturing activity. Economists had expected the index to inch up to 55.8.
"Manufacturing performed well for the third straight month, with demand, consumption and inputs registering growth indicative of a normal expansion cycle," said Timothy R. Fiore, Chair of the ISM Manufacturing Business Survey Committee.
He added, "While certain industry sectors are experiencing difficulties that will continue in the near term, the overall manufacturing community continues to exceed expectations."
Meanwhile, a separate report from the Commerce Department showed construction spending in the U.S. increased by less than expected in the month of September.
Energy stocks are seeing substantial strength on the day, moving higher along with the price of crude oil. Crude for December delivery is rising $0.39 to $36.19 a barrel.
Reflecting the strength in the energy sector, the Philadelphia Oil Service Index is up by 4 percent and the NYSE Arca Oil Index is up by 3.4 percent.
Significant strength has also emerged among chemical stocks, as reflected by the 3.4 percent spike by the S&P Chemical Sector Index.
Housing, banking and commercial real estate stocks are also seeing considerable strength, moving higher along with most of the other major sectors.
In overseas trading, stocks markets across the Asia-Pacific region moved mostly higher during trading on Monday. Japan's Nikkei 225 Index jumped by 1.4 percent, while Hong Kong's Hang Seng Index surged up by 1.5 percent.
The major European markets also showed strong moves to the upside on the day. While the U.K.'s FTSE 100 Index shot up by 1.4 percent, the German DAX Index and the French CAC 40 Index spiked by 2 percent and 2.1 percent, respectively.
In the bond market, treasuries are seeing modest strength after coming under press over the two previous sessions. Subsequently, the yield on the benchmark ten-year note, which moves opposite of its price, is down by 2 basis points at 0.840 percent.
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