Nasdaq Moves Sharply Lower But Dow Holding On To Modest Gain

With technology stocks coming under over the course of the session, weakness has emerged on Wall Street during trading on Tuesday. The Nasdaq and the S&P 500 have slid firmly into negative territory, although the narrower Dow has managed to hold on to a modest gain.

Currently, the tech-heavy Nasdaq is posting particularly steep loss, tumbling 278.05 points or 1.6 percent to 17,092.15. The S&P 500 is also down 45.41 points or 0.8 percent at 5,418.13, but the Dow is up 62.88 points or 0.2 percent at 40,602.81.

Tech stocks have moved sharply lower as the day has progressed, with AI darling and sector leader Nvidia (NVDA) plunging by 5.7 percent to its lowest intraday level in two months.

Microsoft (MSFT) and Advanced Micro Devices (AMD) have also shown notable moves to the downside ahead of the release of their quarterly results after the close of today’s trading.

The weakness in the sector may reflect concerns the earnings won’t be strong enough to support further upside after tech stocks helped lead the markets to record highs earlier this month.

Among tech stocks, semiconductor stocks are turning in some of the worst performances, resulting in a 3.2 percent nosedive by the Philadelphia Semiconductor Index. The index has fallen to a two-month intraday low

Shares of Lattice Semiconductor (LSCC) have plummeted by 8.2 after the chipmaker reported weaker than expected second quarter results and provided disappointing third quarter revenue guidance.

Computer hardware and software stocks are also seeing significant weakness, dragging the NYSE Arca Computer Hardware Index and the Dow Jones U.S. Software Index down by 2.3 percent and 1.9 percent, respectively.

On the other hand, airline stocks have moved sharply higher on the day, with the NYSE Arca Airline Index soaring by 3.1 percent.

Shares of JetBlue (JBLU) have spiked by 16.0 percent after the airline reported an unexpected second quarter profit on better than expected revenues.

Substantial strength is also visible among telecom stocks, as reflected by the 2.3 percent jump by the NYSE Arca North American Telecom Index.

Network solutions provider Lumen Technologies (LUMN) has helped lead the telecom sector higher, skyrocketing by 28.5 percent.

Meanwhile, the uptick by the Dow comes despite a steep drop by shares of Merck (MRK), with the drug giant plummeting by 8.8 percent.

The sell-off by Merck comes after the company reported better than expected second quarter results but provided disappointing full-year earnings guidance.

Shares of Procter & Gamble (PG) have also plunged by 5.5 percent after the consumer products giant reported second quarter earnings that beat analyst estimates but weaker than expected revenues.

At the same time, Dow components Goldman Sachs (GS), Travelers (TRV) and United Health (UNH) are posting strong gains on the day.

In overseas trading, stock markets across the Asia-Pacific region moved mostly lower on Tuesday. Hong Kong’s Hang Seng Index tumbled by 1.4 percent and South Korea’s Kospi slumped by 1.0 percent, although Japan’s Nikkei 225 Index bucked the downtrend and rose by 0.2 percent.

Meanwhile, the major European markets turned in a mixed performance on the day. While the U.K.’s FTSE 100 Index dipped by 0.2 percent, the French CAC 40 Index and the German DAX Index climbed by 0.4 percent and 0.5 percent, respectively.

In the bond market, treasuries have moved higher over the course of the session as traders look ahead to the Fed announcement. Subsequently, the yield on the benchmark ten-year note, which moves opposite of its price, is down by 3.4 basis points at 4.142 percent.

Business News