After ending the previous session firmly in positive territory, the major U.S. stocks indexes have moved in opposite directions during trading on Wednesday. While the Nasdaq and the S&P 500 are giving back ground, the narrower Dow is seeing further upside.
Currently, the major averages continue to turn in a mixed performance. The Dow is up 126.06 points or 0.3 percent at 39,131.55, but the S&P 500 is down 5.09 points or 0.1 percent at 5,170.18 and the Nasdaq is down 74.70 points or 0.5 percent at 16,190.94.
The pullback by the Nasdaq partly reflects weakness in the tech sector, with AI darling Nvidia (NVDA) slumping by 2.6 percent.
Overall trading activity remains somewhat subdued, however, as a lack of major U.S. economic keeps some traders on the sidelines ahead of the release of several key reports in the coming days.
On Thursday, the Labor Department is scheduled to release its report on producer price inflation in the month of February, which may shed additional light on the outlook for interest rates.
Producer prices are expected to rise by 0.3 percent in February, matching the increase seen in January, while the annual rate of producer price growth is expected to accelerate to 1.1 percent from 0 .9 percent.
Reports on weekly jobless claims and retail sales are also due to be released on Thursday, with retail sales expected to rebound in February after slumping in January.
On Friday, trading may be impacted by reaction to reports on import and export prices, industrial production and consumer sentiment.
The University of Michigan’s preliminary report on consumer sentiment in March may be in focus, as it includes reading on inflation expectations.
Sector News
Most of the major sectors are showing only modest moves on the day, contributing to the lackluster performance by the broader markets.
Energy stocks are seeing considerable strength, however, with a sharp increase by the price of crude oil contributing to the strength in the sector.
With crude for April delivery jumping $1.63 to $79.19 a barrel, the NYSE Arca Oil Index is up by 2.0 percent and the Philadelphia Oil Service Index is up by 1.7 percent.
An increase by the price of gold is also contributing to strength among gold stocks, as reflected by the 1.9 percent gain being posted by the NYSE Arca Gold Bugs Index.
On the other hand, semiconductor stocks have shown a significant move to the downside, dragging the Philadelphia Semiconductor Index down by 2.0 percent.
Other Markets
In overseas trading, stock markets across the Asia-Pacific region ended mixed once again on Wednesday. China’s Shanghai Composite Index fell by 0.4 percent and Japan’s Nikkei 225 Index dipped by 0.3 percent, while South Korea’s Kospi rose by 0.4 percent.
Meanwhile, the major European markets have all moved to the upside on the day. While the French CAC 40 Index has advanced by 0.7 percent, the U.K.’s FTSE 100 Index is up by 0.3 percent and the German DAX Index is up by 0.1 percent.
In the bond market, treasuries are extending the pullback seen over the two previous sessions. As a result, the yield on the benchmark ten-year note, which moves opposite of its price, is up by 2.3 basis points at 4.178 percent.
Business News
Dow Seeing Further Upside But Nasdaq, S&P 500 Giving Back Ground
2024-03-13 15:10:30
