After moving to the downside in early trading, stocks have seen continued weakness over the course of the trading session on Monday. The major averages remain stuck in negative territory, adding to the modest losses posted last week.
The weakness on Wall Street is partly due to troubling news from overseas, including remarks from an adviser to the People's Bank of China predicting that China's economic slowdown will continue.
Disappointing economic news out of Europe is also weighing on the markets, with the Ifo Institute saying its index of German business confidence fell to 101.4 in September from 102.3 in August. The drop surprised economists, who had expected the index to edge up to 102.5.
Gold stocks continue to turn in some of the market's worst performances, with the NYSE Arca Gold Bugs Index down by 3 percent. The weakness in the sector comes amid a decrease by the price of the precious metal, with gold for December delivery sliding $13.60 to $1,764.40 an ounce.
Considerable weakness also remains among semiconductor stocks, as reflected by the 1.9 percent loss being posted by the Philadelphia Semiconductor Index. Veeco Instruments (VECO) is helping to lead the sector lower, falling by 10.6 percent after Goldman Sachs cut its rating on the stock to Sell.
Oil service stocks have also come under pressure amid a continued decrease by the price of crude oil. With crude for November delivery tumbling $1.61 to $91.28 a barrel, the Philadelphia Oil Service Index is down by 1.7 percent.
Computer hardware, steel, and biotechnology stocks are also posting notable losses, while railroad stocks are bucking the downtrend following recent weakness in the sector.
Currently, the major averages remain stuck firmly in negative territory. The Dow is down 34.09 points or 0.3 percent at 13,545.38, the Nasdaq is down 28.43 points or 0.9 percent at 3,151.53 and the S&P 500 is down 5.63 points or 0.4 percent at 1,454.52.
by RTT Staff Writer
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