After moving modestly lower in early trading on Monday, stocks have seen some further downside over the course of the morning. The major averages have slid more firmly into negative territory, pulling back further off their recent highs.
The weakness on Wall Street comes on the heels of some troubling economic news from overseas, which has overshadowed better than expected U.S. economic data.
Traders have expressed considerable concern regarding news that China has cut is economic growth outlook for 2012, with the news leading to worries about the outlook for demand in the world's second largest economy.
Resource stocks are seeing considerable weakness on the heels of the news out of China, with steep losses by steel stocks resulting in a 3 percent drop by the NYSE Arca Steel Index. With the loss, the index has fallen to its worst intraday level in well over a month.
Significant weakness is also visible among semiconductor stocks, as reflected by the 2.3 percent loss being posted by the Philadelphia Semiconductor Index. The index has also fallen to a one-month low amid sharp drops by Advanced Micro Devices (AMD) and Micron (MU).
Chemical, airline, and biotechnology stocks are also under pressure in late morning trading, moving to the downside along with most of the major sectors.
The major averages are currently posting notable losses, with the Dow down 77.65 points or 0.6 percent at 12,899.92, while the Nasdaq is down 28.35 points or 0.1 percent at 2,947.84 and the S&P 500 down 10.27 points or 0.8 percent at 1,359.36.
by RTT Staff Writer
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