Following the substantial rebound seen in the previous session, stocks have shown a lack of direction over the course of the trading day on Tuesday. The major averages have spent the day bouncing back and forth across the unchanged line.
Currently, the major averages are turning in a mixed performance. While the Dow is down 21.55 points or 0.1 percent at 40,393.89, the Nasdaq is up 35.62 points or 0.2 percent at 18,043.18 and the S&P 500 is up 5.75 points or 0.1 percent at 5,570.16.
The choppy trading on Wall Street comes as traders express some uncertainty about the outlook for the markets following recent volatility.
Stocks moved sharply higher over the course of the trading session on Monday, with technology stocks seeing a significant rebound following last week’s sell-off.
Traders may also be reluctant to make significant moves ahead of the release of key earnings and economic news in the coming days.
On the earnings front, Google parent Alphabet (GOOGL) and electric vehicle maker Tesla (TSLA) are among the companies due to release their quarterly results after the close of today’s trading.
Later in the week, focus is likely to shift to a report on personal income and spending in June, which includes readings on inflation said to be preferred by the Federal Reserve.
The data could have a significant impact on the outlook for interest rates, with the Fed currently widely expected to lower interest rates by a quarter point in September.
Sector News
Most of the major sectors are showing only modest moves on the day, contributing to the lackluster performance by the broader markets.
Oil producer stocks have shown a significant move to the downside, however, with the NYSE Arca Oil Index falling by 1.3 percent.
The weakness among oil producer stocks comes as the price of crude oil has tumbled to its lowest levels in over a month.
Considerable weakness is also visible among transportation stocks, as reflected by the 1.2 percent loss being posted by the Dow Jones Transportation Average.
Semiconductor and natural gas stocks have also moved to the downside, while retail stocks are showing a strong move to the upside.
Other Markets
In overseas trading, stock markets across the Asia-Pacific region turned in a mixed performance during trading on Tuesday. Japan’s Nikkei 225 Index closed just below the unchanged and China’s Shanghai Composite Index slumped by 1.7 percent, while South Korea’s Kospi rose by 0.4 percent.
The major European markets have also turned mixed on the day. While the German DAX Index is up by 0.7 percent, the French CAC 40 Index and the U.K.’s FTSE 100 Index are both down by 0.4 percent.
In the bond market, treasuries have moved higher after trending lower over the past few sessions. As a result, the yield on the benchmark ten-year note, which moves opposite of its price, is down by 2.5 basis points at 4.234 percent.
U.S. Stocks Lack Direction Following Recent Volatility
2024-07-23 15:07:02
