(RTTNews) – After moving sharply higher over the course of the previous session, stocks are turning in a relatively lackluster performance during trading on Monday. The major averages all moved to the downside at the start of trading, but the tech-heavy Nasdaq has subsequently rebounded into positive territory.
Currently, the major averages are turning in a mixed performance. While the Nasdaq is up 28.69 points or 0.1 percent at 21,525.22, the S&P 500 is down 10.08 points or 0.2 percent at 6,456.83 and the Dow is down 197.59 points or 0.4 percent at 45,434.15.
Profit taking contributed to the initial weakness on Wall Street, as some traders looked to cash in on the strong gains posted last Friday, which lifted the Dow to a new record closing high.
The rally seen during last Friday’s session came as remarks from Federal Reserve Chair Jerome Powell seemed to indicate the central bank is likely to lower interest rates next month.
Selling pressure waned shortly after the start of trading, however, as traders seemed reluctant to make more significant ahead of several key events later this week.
Traders are likely to keep a close eye on earnings news from Nvidia (NVDA), with the AI darling and market leader due to report its second quarter results after the close of trading on Wednesday.
The latest U.S. economic data is also likely to attract attention, as the Commerce Department is due to release a report on Friday that includes the Fed’s preferred readings on consumer price inflation.
Reaction to reports on durable goods orders, consumer confidence and second quarter GDP may also impact trading in the coming days.
On the U.S. economic front, the Commerce Department released a repot this morning showing new home sales in the U.S. decreased from an upwardly revised level in the month of July.
The Commerce Department said new home sales fell by 0.6 percent to an annual rate of 652,000 in July after surging by 4.1 percent to an upwardly revised rate of 656,000 in June.
Economists had expected new home sales to climb by 0.5 percent to an annual rate of 630,000 from the 627,000 originally reported for the previous month.
Sector News
Reflecting the lackluster performance by the broader markets, most of the major sectors are showing only modest moves on the day.
Transportation stocks have shown a notable move to the downside, however, with the Dow Jones Transportation Average falling by 1.1 percent
Healthcare, pharmaceutical and utilities stocks are also seeing some weakness on the day, while steel stocks have moved to the upside.
Other Markets
In overseas trading, stock markets across the Asia-Pacific region moved mostly higher during trading on Monday. Japan’s Nikkei 225 Index climbed by 0.4 percent, while China’s Shanghai Composite Index surged by 1.5 percent.
Meanwhile, most European stocks have moved to the downside on the day, with the U.K. markets closed for a public holiday. While the French CAC 40 Index is down by 0.4 percent, the German DAX Index is down by 0.1percent.
In the bond market, treasuries are giving back ground after moving sharply higher during last Friday’s session. Subsequently, the yield on the benchmark ten-year note, which moves opposite of its price, is up by 3.5 basis points at 4.293 percent.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
#U.S #Stocks #Turning #Lackluster #Performance #Fridays #Rally