After coming under pressure early in the session, stocks have climbed off their worst levels but remain mostly lower in afternoon trading on Monday. The major averages are extending the sharp pullback seen last Friday.
Currently, the Dow is down 64.33 points or 0.2 percent at 33,861.68, the Nasdaq is down 77.49 points or 0.7 percent at 11,929.46 and the S&P 500 is down 22.63 points or 0.6 percent at 4,113.85.
Concerns about the outlook for interest rates continue to weigh on Wall Street following last week’s stronger than expected jobs data.
Trading activity remains somewhat subdued, however, with a lack of major U.S. economic data keeping some traders on the sidelines.
The economic calendar remains relatively light throughout the week, although traders are likely to keep an eye on remarks by Federal Reserve Chair Jerome Powell on Tuesday.
After last week’s interest rate increase, traders are likely to look to Powell’s comments for additional clues about the outlook for further rate hikes.
Computer hardware stocks are seeing considerable weakness on the day, resulting in a 2.4 percent slump by the NYSE Arca Computer Hardware Index.
Dell Technologies (DELL) is posting a steep loss after announcing plans to cut about 6,650 jobs or approximately 5 percent of its global workforce.
Significant weakness also remains visible among steel stocks, as reflected by the 2.1 percent drop by the NYSE Arca Steel Index.
Gold, telecom and housing stocks are also seeing notable weakness, moving lower along with most of the other major sectors.
In overseas trading, stock markets across the Asia-Pacific region moved mostly lower on Monday, although Japan’s Nikkei 225 Index bucked the downtrend and climbed by 0.7 percent. China’s Shanghai Composite Index slid by 0.8 percent, while South Korea’s Kospi tumbled by 1.7 percent.
The major European markets also moved to the downside on the day. While the French CAC 40 Index slumped by 1.3 percent, the U.K.’s FTSE 100 Index and the German DAX Index both fell by 0.8 percent.
In the bond market, treasuries are extending the steep drop seen in the previous session. Subsequently, the yield on the benchmark ten-year note, which moves opposite of its price, is up by 10.6 basis points at 3.638 percent.
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