U.S. Stocks Turning In Mixed Performance In Morning Trading

After moving sharply lower over the course of the previous session, stocks are turning in a mixed performance during trading on Monday. While the Nasdaq has rebounded after yesterday’s sell-off, the Dow and the S&P 500 have moved to the downside.

Currently, the major averages remain on opposite sides of the unchanged line. The Nasdaq is up 51.97 points or 0.4 percent at 13,168.14, but the Dow is down 217.38 points or 0.7 percent at 32,644.92 and the S&P 500 is down 7.47 points or 0.2 percent at 3,907.99.

The rebound by the Nasdaq comes as traders look to pick up technology stocks at reduced levels following the 3 percent nosedive by the tech-heavy index on Thursdays.

Traders are keeping a close eye on activity in the bond market after a spike in treasury yields contributed to yesterday’s sell-off by tech stocks.

Yields pulled back sharply at the start of trading but have subsequently rebounded and are currently lingering near the unchanged line.

Meanwhile, a steep drop by shares of Nike (NKE) is weighing on the Dow after the athletic apparel and footwear giant reported fiscal third quarter earnings that beat expectations but weaker than expected revenues.

Financial stocks have also moved to the downside after the Federal Reserve said a temporary change to the supplementary leverage ratio, or SLR, for depository institutions will expire as scheduled on March 31, 2021.

The temporary change, which allowed banks to hold less capital against Treasuries and other holdings, was made to provide flexibility for depository institutions to provide credit to households and businesses in light of the COVID-19 pandemic.

Reflecting the weakness in the banking sector, the KBW Bank Index is tumbling by 2.6 percent after reaching a record intraday high in the previous session.

On the other hand, energy stocks are seeing some strength on the day, with a rebound by the price of crude oil generating buying interest following yesterday’s sell-off.

In overseas trading, stock markets across the Asia-Pacific region moved mostly lower during trading on Friday. Japan’s Nikkei 225 Index tumbled by 1.4 percent, while China’s Shanghai Composite Index dove by 1.7 percent.

The major European markets have also moved to the downside on the day. While the French CAC 40 Index has slid by 0.9 percent, the German DAX Index and the U.K.’s FTSE 100 Index are both down by 1 percent.

In the bond market, treasuries have recently shown a lack of direction after failing to sustain an early rebound. Subsequently, the yield on the benchmark ten-year note, which moves opposite of its price, is up by less than a basis point at 1.732 percent.