Following the sharp pullback seen in the previous session, stocks are seeing further downside in morning trading on Monday. With the downward move, the Nasdaq and S&P 500 are pulling back further off multi-month highs.
In recent trading, the major averages have seen further downside. The Dow is down 194.75 points or 0.6 percent at 33,731.26, the Nasdaq is down 126.53 points or 1.1 percent at 11,880.43 and the S&P 500 is down 36.06 points or 0.8 percent at 4,100.42.
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.
Steel stocks have shown a substantial move to the downside amid concerns about the outlook for global demand, dragging the NYSE Arca Steel Index down by 2.8 percent.
Significant weakness is also visible among computer hardware stocks, as reflected by the 2.5 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.
Housing, telecom and oil stocks are also seeing notable weakness on the day, 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 have also moved to the downside on the day. While the French CAC 40 Index has dove by 1.7 percent, the U.K.’s FTSE 100 Index is down by 1.0 percent and the German DAX Index is down by 0.9 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 8.6 basis points at 3.618 percent.
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