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U.S. Stocks Seeing Moderate Weakness Following Recent Strength

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Stocks have moved moderately lower in morning trading on Tuesday, giving back some ground following the rally seen last week. The major averages have all moved to the downside, although selling pressure has remained relatively subdued.

Currently, the major averages remain stuck in negative territory. The Dow is down 99.62 points or 0.3 percent at 29,248.48, the Nasdaq is down 17.82 points or 0.2 percent at 9,371.12 and the S&P 500 is down 9.10 points or 0.3 percent at 3,320.52.

The pullback off last Friday's record highs comes amid concerns about the economic impact of a deadly coronavirus outbreak in China.

Chinese officials revealed the coronavirus outbreak has resulted in six deaths among nearly 300 confirmed cases, with the virus confirmed to be transmissible among humans.

Adding to the negative sentiment, the International Monetary Fund downwardly revised its forecast for global economic outlook due to bigger than expected slowdowns in emerging markets like India.

The IMF said it now expects 3.3 percent global growth in 2020 compared to its previous estimate for 3.4 percent growth. The organization also lowered its 2021 growth forecast to 3.4 percent from 3.6 percent.

Stocks are holding on to the bulk of their recent gains, however, with traders seemingly reluctant to miss out on any further upside.

Steel stocks have shown a substantial move to the downside amid concerns about the outlook for global demand, with the NYSE Arca Steel Index tumbling by 2.2 percent to its lowest intraday level in a month.

Significant weakness has also emerged among natural gas stocks, as reflected by the 2.1 percent slump by the NYSE Arca Natural Gas Index.

Tobacco, transportation and oil service stocks are also seeing notable weakness, while gold stocks are moving higher despite a decrease by the price of the precious metal.

In overseas trading, stock markets across the Asia-Pacific region moved mostly lower during trading on Tuesday. Japan's Nikkei 225 Index slumped by 0.9 percent, while Hong Kong's Hang Seng plummeted by 2.8 percent.

The major European markets have also moved to the downside on the day. While the German DAX Index has dipped by 0.1 percent, the U..K.'s FTSE 100 Index and the French CAC 40 Index are down by 0.6 percent and 0.7 percent, respectively.

In the bond market, treasuries have moved notably higher amid their appeal as a safe haven. As a result, the yield on the benchmark ten-year, which moves opposite of its price, is down by 6.7 basis points at 1.769 percent.

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