Stocks have moved mostly lower in morning trading on Tuesday, pulling back further off yesterday’s early highs. The major averages have all moved to the downside, with the tech-heavy Nasdaq showing a particularly steep drop.
Currently, the major averages are off their lows of the session but still in the red. While the Nasdaq is down 131.41 points or 1 percent at 12,513.05, the S&P 500 is down 11.44 points or 0.3 percent at 4,128.62 and the Dow is down 22.04 points or 0.1 percent at 32,810.50.
Technology stocks have helped to lead Wall Street lower, as reflected by the sharp decline by the Nasdaq, which continues to give back ground after reaching a three-month intraday high in early trading on Monday.
Within the tech sector, semiconductor stocks are turning in some of the worst performances, resulting in a 3.9 percent nosedive by the Philadelphia Semiconductor Index.
The sell-off by semiconductor comes following a warning from Micron Technology (MU), with the memory chip maker plunging by 5.2 percent.
Micron warned revenue for the current quarter may come in at or below the low end of its previous guidance, citing “macroeconomic factors and supply chain constraints.”
The news from Micron comes after a warning from graphics chip maker Nvidia (NVDA) contributed to the pullback by the markets on Monday.
Computer hardware stocks are also seeing considerable weakness on the day, with the NYSE Arca Computer Hardware Index slumping by 3.5 percent after ending the previous session at a two-month closing high.
Outside of the tech sector, airline stocks have moved sharply lower, dragging the NYSE Arca Airline Index down by 3.6 percent. The index also ended the previous session at its best closing level in two months.
Housing, retail and biotechnology stocks are also seeing notable weakness, while energy stocks are moving sharply higher amid a continued increase by the price of crude oil.
The weakness on Wall Street also comes as traders look ahead to the release of a highly anticipated reading on U.S. consumer price inflation on Wednesday.
The report is expected to show consumer prices edged up by 0.2 percent in July after jumping by 1.3 percent in June. The annual rate of growth is expected to slow to 8.7 percent from a four-decade high of 9.1 percent.
Core consumer prices, which exclude food and energy prices, are expected to rise by 0.5 percent in July after climbing by 0.7 percent in June. Annual core consumer price growth is expected to accelerate to 6.1 percent from 5.9 percent.
In overseas trading, stock markets across the Asia-Pacific region turned in another mixed performance during trading on Tuesday. Japan’s Nikkei 225 Index slid by 0.9 percent, while China’s Shanghai Composite Index rose by 0.3 percent.
The major European markets have also turned mixed on the day. While the U.K.’s FTSE 100 Index has inched up by 0.2 percent, the French CAC 40 Index is down by 0.4 percent and the German DAX Index is down by 1 percent.
In the bond market, treasuries have moved back to the downside following the rebound seen in the previous session. Subsequently, the yield on the benchmark ten-year note, which moves opposite of its price, is up by 2.3 basis points at 2.788 percent.
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