Stocks are turning in a lackluster performance in early trading on Tuesday after showing a substantial move to the downside in the previous session. The major averages have thus far been unable to sustain any significant moves.
Currently, the major averages are turning in a mixed performance, with the Nasdaq posting a modest loss. The Nasdaq is down 4.89 points or 0.2 percent at 2,797.73, while the Dow is up 14.91 points or 0.1 percent at 12,520.67 and the S&P 500 is up 1.14 points or 0.1 percent at 1,320.63.
The choppy trading comes as traders continue to express uncertainty about the financial situation in Europe, as the specter of default still looms over Greece.
Traders are also digesting the Commerce Department's report on the U.S. trade balance in the month of May, which showed that the trade deficit unexpectedly widened amid a jump in oil imports.
While most of the major sectors are showing only modest moves, considerable weakness has emerged among semiconductor stocks. The Philadelphia Semiconductor Index is down by 2.5 percent, pulling back further off last Thursday's one-month closing high.
Novellus Systems (NVLS) is helping to lead the semiconductor sector lower after the semiconductor equipment maker reported better than expected second quarter earnings but forecast third quarter revenues below analyst estimates.
Airline stocks are also seeing notable weakness in early trading, while significant strength is visible among commercial real estate and banking stocks.
Shares of Alcoa (AA) are seeing modest strength after the aluminum giant reported second quarter adjusted income from continuing operations of $0.32 per share, as revenues rose 27 percent to $6.6 billion, ahead of the $6.32 billion consensus estimate.
In overseas trading, stock markets across the Asia-Pacific region saw considerable weakness on Tuesday following the sell-off seen on Wall Street overnight. Japan's benchmark Nikkei 225 Index fell by 1.4 percent, while Hong Kong's Hang Seng Index plunged by 3.1 percent.
The major European markets are also seeing weakness on the day but have moved well off their worst levels. The U.K.'s FTSE 100 and the French CAC 40 Index are both down by 0.9 percent, while the German DAX Index is down by 1.1 percent.
In the bond market, treasuries are seeing modest strength, extending a recent move to the upside. As a result, the yield on the benchmark ten-year note, which moves opposite of its price, is down by 2.4 basis points at 2.893 percent.
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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.