Stocks Showing Strong Upward Move In Mid-Day Trading - U.S. Commentary

(RTTNews) - With traders digesting the results of yesterday's election, stocks have fluctuated over the course of the trading session on Wednesday.

The major averages have recently climbed firmly into positive territory after bouncing back and forth across the unchanged line earlier in the day.

In recent trading, the major averages have seen further upside, reaching new highs for the session. The Dow is up 204.08 points or 1.1 percent at 18,536.82, the Nasdaq is up 52.78 points or 1 percent at 5,246.27 and the S&P 500 is up 23.03 points or 1.1 percent at 2,162.59.

The volatility on Wall Street comes as traders digest Republican presidential nominee Donald Trump's surprise victory in yesterday's election.

Trump managed to pull an upset over Democratic rival Hillary Clinton after winning several key battleground states, including Florida, Pennsylvania, and Ohio.

The billionaire-turned-politician vowed to unite the country in his victory speech, but investors remain wary about how some of his policy proposals will play out in reality.

Sector News

Adding to recent gains, biotechnology stocks have shown a substantial move to the upside on the day. The NYSE Arca Biotechnology Index has surged up by 8.1 percent, reaching its best intraday level in a month.

Within the biotech sector, Sucampo Pharmaceuticals (SCMP), Ionis Pharmaceuticals (IONS), and Ariad Pharmaceuticals (ARIA) are posting standout gains.

Steel stocks are also extending a recent upward move, driving the NYSE Arca Steel Index up by 7 percent to its best intraday level in well over a year.

The continued strength among steel stocks comes amid optimism the industry will benefit from heightened protectionism and increased infrastructure spending under Trump.

Pharmaceutical, financial, gold, and energy stocks are also seeing considerable strength in afternoon trading, while significant weakness remains visible among utilities stocks.

Other Markets

In overseas trading, stock markets across the Asia-Pacific region saw considerable weakness during trading on Wednesday. Japan's Nikkei 225 Index plummeted by 5.4 percent, while Hong Kong's Hang Seng Index plunged by 2.2 percent.

Meanwhile, the major European markets moved notably higher as the day has progressed. While the U.K.'s FTSE 100 Index jumped by 1 percent, the French CAC 40 Index and the German DAX Index surged up by 1.5 percent and 1.6 percent, respectively.

In the bond market, treasuries have fallen sharply in reaction to Trump's victory in the presidential election. Subsequently, the yield on the benchmark ten-year note, which moves opposite of its price, has shot up by 13.3 basis points to 1.995 percent.