The major U.S. stock indexes moved in opposite directions early in the session on Wednesday and continue to turn in a mixed performance in afternoon trading. While the tech-heavy Nasdaq is adding to yesterday’s strong gain, the Dow remains in the red.
Currently, the Nasdaq is well off its highs of the session but still up 22.64 points or 0.2 percent at 13,578.31. Meanwhile, the S&P 500 is down 7.03 points or 0.2 percent at 4,371.38 and the Dow is down 129.51 points or 0.4 percent at 33,797.23.
The Nasdaq has turned positive after moving lower early in the session amid notable weakness among semiconductor stocks.
The weakness in the sector came after a report from the Wall Street Journal said the Biden administration is considering new restrictions on exports of artificial intelligence chips to China.
Citing people familiar with the situation, the Journal said the Commerce Department could move as soon as early next month to stop the shipments of chips to customers in China and other countries of concern without first obtaining a license.
The Journal noted the potential restrictions come amid concerns China could use AI chips for weapon development and hacking.
Selling pressure waned shortly after the start of trading, however, with the Philadelphia Semiconductor Index climbing well off its worst levels.
Strength has subsequently emerged among other tech stocks, contributing to the turnaround by the Nasdaq. Tesla (TSLA) and Netflix (NFLX) are posting notable gains.
Meanwhile, Dow components Travelers (TRV), Home Depot (HD) and UnitedHealth (UNH) remain under pressure, weighing on the blue chip index.
Traders also kept an eye on remarks by Federal Reserve Chair Jerome Powell during a panel discussion at the European Central Bank Forum on Central Banking in Sintra, Portugal.
Powell reiterated that he expects additional interest rate hikes in the months ahead and said raising rates at consecutive meetings is not off the table
The Fed Chief was joined by European Central Bank President Christine Lagarde, Bank of England Governor Andrew Bailey and Bank of Japan Governor Kazuo Ueda.
Sector News
Most of the major sectors continue to show only modest moves on the day, although gold stocks remain under pressure, dragging the NYSE Arca Gold Bugs Index down by 1.7 percent to a three-month intraday low.
The weakness among gold stocks comes amid a modest decrease by the price of the precious metal, with gold for August delivery edging down $1.80 to $1,922 an ounce.
Significant weakness has also emerged among interest rate-sensitive utilities stocks, as reflected by the 1.6 percent drop by the Dow Jones Utility Average.
Banking and steel stocks have also moved to the downside on the day, while airline stocks are extending the rally seen in the previous session.
Other Markets
In overseas trading, stock markets across the Asia-Pacific region turned in another mixed performance during trading on Wednesday. Japan’s Nikkei 225 Index spiked by 2.0 percent, while South Korea’s Kospi slid by 0.7 percent.
Meanwhile, the major European markets have all moved to the upside on the day. While the French CAC 40 Index jumped by 1.0 percent, the German DAX Index and the U.K.’s FTSE 100 Index climbed by 0.6 percent and 0.5 percent, respectively.
In the bond market, treasuries have climbed firmly into positive territory over the course of the session. As a result, the yield on the benchmark ten-year note, which moves opposite of its price, is down by 5.0 basis points at 3.718 percent.
Business News
Major Averages Continue To Turn In Mixed Performance In Afternoon Trading
2023-06-28 17:46:54
