While selling pressure has remained subdued, stocks continue to see modest weakness in mid-day trading on Wednesday. The losses on the day are partly offsetting the gains posted over the course of the two previous sessions.
The major averages have moved to the downside in recent trading, with the Nasdaq hitting a new low for the session. The Dow is down 18.66 points or 0.1 percent at 15,299.57, the Nasdaq is down 6.65 points or 0.2 percent at 3,475.53 and the S&P 500 is down 2.79 points or 0.2 percent at 1,649.02.
The modest weakness on Wall Street comes as traders express uncertainty ahead of the Federal Reserve's announcement of its latest monetary policy decision.
The Fed is not expected to announce an immediate change in policy, but traders will be looking for any signals regarding when the central bank will scale back its asset purchase program.
Rob Carnell, chief international economist at ING, said, "The message that the Fed is thinking about scaling back QE before too long has been received loud and clear."
"What markets now want to know is 'exactly how is this likely to proceed?', and until more clarity on that is forthcoming, markets are likely to remain jittery," he added.
The markets may experience considerable volatility in the immediate aftermath of the Fed's announcement, which is due at about 2 pm ET.
The announcement will be followed by a press conference from Fed Chairman Ben Bernanke, who may look to smooth over any miscommunication from the central bank's statement.
Despite the modest pullback by the broader markets, shares of FedEx (FDX) are seeing notable strength after the delivery giant reported adjusted fourth quarter earnings that came in above analyst estimates. The company also forecast 7 to 13 percent earnings growth in fiscal 2014.
Software maker Adobe Systems (ADBE) is also moving to the upside after reporting better than expected adjusted second quarter earnings. The company also reported revenues for the quarter that fell year-over-year but matched analyst estimates.
Meanwhile, shares of Tetra Tech (TTEK) have come under pressure after the consulting and engineering services company forecast a third quarter loss.
Sector News
While most of the major sectors are showing only modest moves on the day, notable weakness is visible among healthcare provider stocks. The Morgan Stanley Healthcare Provider Index is down by 1.1 percent, pulling back further off the record closing high that it set last Thursday.
Tenet Healthcare (THC) and Health Management Associates (HMA) are turning in two of the healthcare provider sectors worst performances.
Housing stocks have also come under pressure over the course of the session, dragging the Philadelphia Housing Sector Index down by 1.1 percent. Ryland Group (RYL) and Meritage Homes (MTH) are posting notable losses.
Electronic storage, telecom, and airline stocks are also seeing some weakness on the day, although selling pressure remains subdued.
Other Markets
In overseas trading, stock markets across the Asia-Pacific region turned in another mixed performance during trading on Wednesday. Japan's Nikkei 225 Index surged up by 1.8 percent, while Hong Kong's Hang Seng Index tumbled by 1.1 percent.
Meanwhile, the major European markets all moved to the downside on the day. While the French CAC 40 Index fell by 0.6 percent, the U.K.'s FTSE 100 Index and the German DAX Index both ended the day down by 0.4 percent.
In the bond market, treasuries have come under pressure after showing a lack of direction earlier in the session. Subsequently, the yield on the benchmark ten-year note, which moves opposite of its price, is up by 2.7 basis points at 2.209 percent.
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Business News
June 05, 2026 16:18 ET A busy week for economic news flow saw a slew of reports being released that reflected the trends in the U.S. labor market. In Europe, economic growth and inflation data gained attention as the European Central Bank and Bank of England head for policy session later in the month. In Asia, the monetary policy session of the Indian central bank was in focus as the country, a major oil importer, reels under the pressures of a weaker rupee and rising inflation.