U.S. Stocks Move To The Downside Amid Pullback By Nvidia

Stocks have moved to the downside during trading on Wednesday, giving back ground after ending the previous session mostly higher. The major averages have all slid into negative territory, although the Dow is posting a relatively modest loss.

The major averages have climbed well off their worst levels in recent trading but remain in the red. The Dow is down 52.77 points or 0.1 percent at 43,216.17, the Nasdaq is down 123.44 points or 0.7 percent at 18,864.03 and the S&P 500 is down 31.11 points or 0.5 percent at 5,885.87.

A pullback by shares of Nvidia (NVDA) is weighing on the markets, with the AI darling slumping by 1.1 percent after surging by 4.9 percent on Tuesday.

Nvidia, which has recently been a major market leader, is moving lower ahead of the release of its fiscal third quarter financial results after the close of today’s trading.

The weakness on Wall Street also comes amid a nosedive by shares of Target (TGT), as the retailer is plunging by 20.8 percent after reporting weaker than expected third quarter results and lowering its full-year guidance.

Overall trading activity appears somewhat subdued, however, with a lack of major U.S. economic data keeping some traders on the sidelines.

Traders may also be reluctant to make more significant moves as they keep an eye on developments overseas amid escalating tensions between Ukraine and Russia.

Sector News

With Target leading the way lower, retail stocks have shown a significant move to the downside, dragging the Dow Jones U.S. Retail Index down by 1.2 percent.

Notable weakness is also visible among computer hardware stocks, as reflected by the 1.2 percent loss being posted by the NYSE Arca Computer Hardware Index.

A pullback by Super Micro Computer (SMCI) is weighing on the sector, with the tech company giving back ground after moving sharply higher over the two previous sessions.

On the other hand, biotechnology stocks have shown a strong move to the upside, driving the NYSE Arca Biotechnology Index up by 1.2 percent.

Other Markets

In overseas trading, stock markets across the Asia-Pacific region turned in a mixed performance during trading on Wednesday. Japan’s Nikkei 225 Index dipped by 0.2 percent, while China’s Shanghai Composite Index climbed by 0.7 percent.

Meanwhile, the major European markets have all moved to the downside on the day. While the U.K.’s FTSE 100 Index is down by 0.2 percent, the French CAC 40 Index and the German DAX Index are both down by 0.4 percent.

In the bond market, treasuries are giving back ground after ending the previous session firmly positive. 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 4.402 percent.