After failing to sustain an initial move to the upside, stocks have moved mostly lower over the course of the trading session on Monday. The major averages have pulled back well off their highs of the session and into negative territory.
Currently, the Nasdaq is down 197.94 points or 1.0 percent at 19,326.07 and the S&P 500 is down 21.36 points or 0.4 percent at 5,991.77. The narrower Dow is posting a more modest loss, down 1.92 points or less than a tenth of a percent at 43,426.10.
The initial strength on Wall Street came as some traders looked to pick up stocks at relatively reduced levels following the weakness seen over the two previous sessions, which dragged the Dow down to its lowest closing level in a month.
Buying interest waned shortly after the start of trading, however, with tech stocks leading the subsequent pullback amid concerns about the sustainability of the artificial intelligence trade.
Shares of Palantir (PLTR) have tumbled by 10.2 percent, while Microsoft (MSFT) has fallen by 1.7 percent after an analyst report from TD Cowen said the software giant is cutting spending on data centers.
AI darling and market leader Nvidia (NVDA) has also slid by 1.8 percent ahead of the release its fourth quarter results after the close of trading on Wednesday.
Concerns about the outlook for the U.S. economy may also be weighing on Wall Street following last Friday’s disappointing consumer sentiment data.
Later in the week, the focus is likely to shift to the Federal Reserve’s preferred readings on consumer price inflation.
Sector News
Software stocks have shown a significant move to the downside on the day, dragging the Dow Jones U.S. Software Index down by 2.0 percent to its lowest intraday level in over three months.
Computer hardware, semiconductor and networking stocks are also seeing considerable weakness, contributing to the slump by the tech-heavy Nasdaq.
Gold, retail and brokerage stocks have also moved to the downside, while some strength is visible among healthcare and pharmaceutical stocks.
Other Markets
In overseas trading, stock markets across the Asia-Pacific region moved mostly lower on Monday, with the Japanese markets closed in observance of the emperor’s birthday. Hong Kong’s Hang Seng Index slid by 0.6 percent, while China’s Shanghai Composite Index dipped by 0.2 percent.
Most European stocks have also moved to the downside on the day. The French CAC 40 Index is down by 0.9 percent and the U.K.’s FTSE 100 Index is up by 0.4 percent, although the German DAX Index has bucked the downtrend and risen by 0.2 percent.
In the bond market, treasuries have moved slightly higher, extending the strong upward move seen over the two previous sessions. Subsequently, the yield on the benchmark ten-year note, which moves opposite of its price, is down by 1.2 basis points at 4.408 percent.
Business News
U.S. Stocks Move Mostly Lower After Initial Upward Move
2025-02-24 15:48:35
