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Nasdaq Remains Sharply Lower In Afternoon Trading, Dow Nearly Unchanged

wallstreet aug30 23nov21 lt

The tech-heavy Nasdaq has moved sharply lower during trading on Tuesday, extending the substantial pullback seen in the previous session. The S&P 500 has also moved to the downside, while the Dow has spent the day bouncing back and forth across the unchanged line.

Currently, the Nasdaq is off its worst levels of the day but still down by 212.89 points or 1.3 percent at 15,641.87. While the S&P 500 is also down 20.47 points or 0.4 percent at 4,662.47, the Dow is up 3.16 points or less than a tenth of a percent at 35,622.41.

The Nasdaq is pulling back further off the record intraday high set in early trading on Monday, as a continued increase in treasury yields weighs on high-growth tech stocks.

Yields have moved notably higher since President Joe Biden announced his intention to nominate Jerome Powell for a second term as Fed Chair.

While Biden also intends to nominate current Fed Governor Lael Brainard as Vice Chair, she was seen as a potentially more dovish alternative to Powell.

Overall trading activity remains somewhat subdued, however, with a lack of major U.S. economic data keeping some traders on the sidelines ahead of the release of a slew of reports on Wednesday.

Reports on weekly jobless claims, durable goods orders, new home sales and personal income and spending are likely to attract attention.

Some trades may also be looking to get a head start on the Thanksgiving Day holiday, as the markets will be closed on Thursday and open for just a half-day on Friday.

Sector News

Gold stocks have moved sharply lower on the day, extending a recent downward trend amid another steep drop by the price of the precious metal.

With gold for December delivery tumbling $19.90 to $1,786.40 an ounce, the NYSE Arca Gold Bugs Index is down by 2.2 percent.

Significant weakness also remains visible among software stocks, as reflected by the 2.1 percent slump by the Dow Jones U.S. Software Index. The index continues to give back ground after ending last Friday's trading at a record closing high.

Semiconductor stocks have also shown a notable move to the downside on the day, resulting in a 1.3 percent drop by the Philadelphia Semiconductor Index, which also reached a record closing high last Friday.

On the other hand, energy stocks are regaining ground amid a continued rebound by the price of crude oil. Crude for January is currently surging $2.06 to $78.81 a barrel.

Reflecting the strength in the energy sector, the Philadelphia Oil Service Index is up by 3.5 percent, the NYSE Arca Oil Index is up by 2.6 percent and the NYSE Arca Natural Gas Index is up by 2 percent.

Other Markets

In overseas trading, stock markets across the Asia-Pacific region turned in a mixed performance on Tuesday, with the Japanese markets closed for a holiday. China's Shanghai Composite Index rose by 0.2 percent, while Hong Kong's Hang Seng Index tumbled by 1.2 percent.

Meanwhile, European stocks moved mostly lower over the course of the session. The German DAX Index slumped by 1.1 percent and the French CAC 40 Index slid by 0.9 percent, although the U.K.'s FTSE 100 Index bucked the downtrend and inched up by 0.2 percent.

In the bond market, treasuries are extending the pullback seen in the previous session. Subsequently, the yield on the benchmark ten-year note, which moves opposite of its price, is up by 3 basis points at 1.655 percent.

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