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U.S. Stocks Turn Mixed After Seeing Initial Weakness

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Following an initial move to the downside, stocks have turned mixed over the course of the trading session on Tuesday. The tech-heavy Nasdaq has bounced off its lows of the session and into positive territory, while the Dow and the S&P 500 remain in the red.

Currently, the major averages are on opposite sides of the unchanged line. While the Nasdaq is up 14.19 points or 0.2 percent at 8,112.57, the Dow is down 96.89 points or 0.4 percent at 26,709.25 and the S&P 500 is down 3.53 points or 0.1 percent at 2,972.42.

The lackluster performance on Wall Street comes as traders seem reluctant to make more significant moves ahead of upcoming Congressional testimony from Federal Reserve Chairman Jerome Powell.

Powell is due to testify before the House Financial Services Committee on Wednesday and before the Senate Banking Committee on Thursday.

The Fed chief is not likely to specifically lay out the central bank's plans to lawmakers, but traders are likely to closely analyze his comments for clues about the outlook for interest rates.

Wednesday will also see the release of the minutes of the Fed's last monetary policy meeting, which may shed additional light on the central bank's decision to make notable changes to its accompanying statement.

A notable drop by 3M (MMM) is weighing on the Dow, with the diversified manufacturer slumping by 2.7 percent after RBC Capital Markets downgraded its rating on the company's stock to Sector Perform from Outperform.

Meanwhile, the Nasdaq is benefiting from strength among biotechnology stocks, which are rebounding after seeing considerable weakness in the previous session.

Reflecting the strength in the biotech sector, the NYSE Arca Biotechnology Index is climbing by 1.3 percent following the 1.8 percent drop on Monday.

Additionally, Acacia Communications (ACIA) is posting a substantial gain after the networking company agreed to be acquired by Cisco Systems (CSCO) for $70 per share in cash.

Most of the other major sectors are showing only modest moves on the day, although notable weakness is visible among tobacco and steel stocks.

In overseas trading, stock markets across the Asia-Pacific region moved mostly lower on Tuesday, although Japan's Nikkei 225 Index bucked the downtrend and inched up by 0.1 percent. China's Shanghai Composite Index dipped by 0.2 percent, while Hong Kong's Hang Seng Index slid by 0.8 percent.

The major European markets also moved to the downside on the day. While the German DAX Index fell by 0.9 percent, the French CAC 40 Index and the U.K.'s FTSE 100 Index slipped by 0.3 percent and 0.2 percent, respectively.

In the bond market, treasuries are pulling back once again following the modest rebound seen in the previous session. Subsequently, the yield on the benchmark ten-year note, which moves opposite of its price, is up by 2 basis points at 2.054 percent.

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