U.S. Stocks Regain Ground After Early Move To The Downside

After coming under pressure early in the session, stocks have regained ground over the course of the trading day on Tuesday. The major averages have climbed well off their early lows, with the Nasdaq and the S&P 500 reaching positive territory.

Currently, the major averages are turning in a mixed performance. While the Dow is down 179.71 points or 0.4 percent at 43,209.89, the S&P 500 is up 2.08 points or less than a tenth of a percent at 5,895.70 and the Nasdaq is up 75.42 points or 0.4 percent at 18,867.23.

The early weakness on Wall Street came amid concerns about escalating tensions between the U.S. and Russia.

After President Joe Biden gave Ukraine permission to attack Russian territory using U.S.-made long-range missiles, Russian President Vladimir Putin has signed a decree amending the country’s nuclear doctrine.

Kremlin Spokesperson Dmitry Peskov said the updated doctrine says Russia “reserves the right to use nuclear weapons in the event of aggression with the use of conventional weapons against it or the Republic of Belarus, which creates a critical threat to sovereignty or territorial integrity.”

“Aggression against the Russian Federation by any non-nuclear state with the participation or support of a nuclear state is considered a joint attack,” Peskov added, according to NBC News.

Shortly before the Kremlin updated its nuclear weapons doctrine, Ukraine reportedly used U.S.-made long-range missiles to attack a Russian military facility in the Bryansk border region.

Selling pressure waned shortly after the start of trading, however, with an advance by shares of Nvidia (NVDA) helping lead the turnaround by the Nasdaq.

Nvidia is currently jumping by 2.8 percent ahead of the release of its fiscal third quarter results after the close of trading on Wednesday.

Retail giant Walmart (WMT) has also shown a notable move to the upside after reporting better than expected third quarter results and raising its full-year guidance.

Meanwhile, shares of Lowe’s (LOW) have slumped after the home improvement retailer reported third quarter results that exceeded estimates but forecast a decrease by full-year sales.

Sector News

Computer hardware stocks are extending the surge seen in the previous session, driving the NYSE Arca Computer Hardware Index up by 2.7 percent. The index continues to regain ground after hitting a two-month closing low last Friday.

Super Micro Computer (SMCI) is leading the sector higher once again after announcing BDO as its independent auditor and submitting a compliance plan to the Nasdaq.

On the other hand, airline stocks have moved sharply lower on the day, resulting in a 3.5 percent nosedive by the NYSE Arca Airline Index.

Other Markets

In overseas trading, stock markets across the Asia-Pacific region moved mostly higher during trading on Tuesday. Japan’s Nikkei 225 Index rose by 0.5 percent, while China’s Shanghai Composite Index advanced by 0.8 percent.

Meanwhile, the major European markets have moved to the downside on the day. While the U.K.’s FTSE 100 Index is down by 0.3 percent, the French CAC 40 Index is down by 1.0 percent and the German DAX Index is down by 1.1 percent.

In the bond market, treasuries have pulled back off their early highs but remain in positive territory. As a result, the yield on the benchmark ten-year note, which moves opposite of its price, is down by 3.9 basis points at 4.375 percent.

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