U.S. Stocks Pulling Back Sharply As Early Buying Interest Fades
After failing to sustain an initial move to the upside, stocks have shown a substantial downturn over the course of the trading day on Friday. With the sharp pullback on the day, the major averages have once again fallen to their lowest intraday levels in over a year.
The major averages have seen further downside in recent trading, falling to new lows for the session. The Dow is down 496.44 points or 1.6 percent at 30,756.69, the Nasdaq is down 298.74 points or 2.6 percent at 11,089.76 and the S&P 500 is down 74.31 points or 1.9 percent at 3,826.48.
Bargain hunting contributed to the initial strength on Wall Street, with some traders looking to pick up stocks at reduced levels.
However, recent rebound attempts have not met with much success amid lingering concerns about the outlook for the global economy.
The subsequent pullback by stocks may also reflect recent downward momentum, which has contributed to recent sell-offs despite a lack of specific catalysts.
The S&P 500 is currently 20.2 percent below the record closing high set in January, hinting the index could end the session in bear market territory.
A lack of major U.S. economic data may be keeping some traders on the sidelines following the release of a slew of data earlier this week.
Traders may be looking ahead to next week’s reports on new home sales, durable goods orders, and personal income and spending as well as the minutes of the latest Federal Reserve meeting.
Computer hardware stocks have moved sharply lower over the course of the session, dragging the NYSE Arca Computer Hardware Index down by 5.1 percent to its lowest intraday level in well over a year.
Substantial weakness has also emerged among semiconductor socks, as reflected by the 3.8 percent nosedive by the Philadelphia Semiconductor Index.
Semiconductor equipment maker Applied Materials (AMAT) is posting a steep loss after reporting weaker than expected fiscal second quarter results and providing disappointing guidance.
Retail stocks are also seeing significant weakness on the day, with the Dow Jones U.S. Retail Index tumbling by 2.8 percent to a two-year intraday low.
Airline, chemical and networking stocks have also shown notable moves to the downside amid broad based selling pressure on Wall Street.
In overseas trading, stock markets across the Asia-Pacific region moved sharply higher during trading on Friday. Japan’s Nikkei 225 Index jumped by 1.3 percent, while Hong Kong’s Hang Seng Index spiked by 3 percent.
The major European markets also moved to the upside on the day but closed well off their best levels. While the U.K.’s FTSE 100 Index shot up by 1.2 percent, the German DAX Index climbed by 0.7 percent and the French CAC 40 Index edged up by 0.2 percent.
In the bond market, treasuries have climbed firmly into positive territory amid the sell-off on Wall Street. Subsequently, the yield on the benchmark ten-year note, which moves opposite of its price, is down by 7.6 basis points at 2.779 percent.
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