After failing to sustain an initial upward move, stocks have turned lower over the course of the trading day on Wednesday. The major averages have pulled back well off their highs for the session and into negative territory.
While traders went bargain hunting at the open following yesterday's weakness, buying interest waned not long after the start of trading.
The subsequent pullback by stocks reflected the recent downward momentum for the markets amid lingering concerns about the outlook for the Federal Reserve's stimulus program.
Concerns about the situation in Turkey are also weighing on the markets after riot police used tear gas and water cannons to clear anti-government protesters from Istanbul's Taksim Square.
Despite the pullback by the broader markets, significant strength remains visible among gold stocks. After ending the previous session sharply lower, the NYSE Arca Gold Bugs Index has surged up by 2.1 percent.
The strength among gold stocks comes amid a notable increase by the price of the precious metal, with gold for August delivery climbing $15.40 to $1,392.40 an ounce.
Most of the other major sectors are showing only modest moves, although weakness has emerged among utilities, internet, and telecom stocks.
The major averages have bounced off their new lows for the session in the past few minutes but remain firmly in the red. The Dow is down 55.06 points or 0.4 percent at 15,066.96, the Nasdaq is down 18.14 points or 0.5 percent at 3,418.80 and the S&P 500 is down 6.44 points or 0.4 percent at 1,619.69.
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Market Analysis
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.