Stocks have moved sharply lower over the course of morning trading on Tuesday, offsetting the rebound seen in the previous session. The major averages have all shown substantial moves to the downside, with the tech-heavy Nasdaq leading the way lower.
Currently, the major averages are just off their lows of the session. The Dow is down 477.82 points or 1.4 percent at 33,571.64, the Nasdaq is down 394.10 points or 3 percent at 12,610.75 and the S&P 500 is down 77.88 points or 1.8 percent at 4,218.24.
The sell-off on Wall Street comes as elevated inflation, Covid-19 lockdowns in China and the ongoing war in Ukraine continue to weigh on investors’ minds as they digest the latest earnings news.
Airline stocks are turning in some of the market’s worst performances on the day, resulting in a 4.5 percent nosedive by the NYSE Arca Airline Index.
Substantial weakness is also visible among semiconductor stocks, as reflected by the 3.7 percent plunge by the Philadelphia Semiconductor Index.
Biotechnology stocks have also shown a significant move to the downside, dragging the NYSE Arca Biotechnology Index down by 2.7 percent.
Retail, brokerage and steel stocks are also seeing considerable weakness, while energy stocks are bucking the downtrend amid a rebound by the price of crude oil.
On the U.S. economic front, a report released by the Commerce Department showed new orders for U.S. manufactured durable goods rebounded in the month of March.
The report showed durable goods orders climbed by 0.8 percent in March after tumbling by a revised 1.7 percent in February.
Economists had expected durable goods orders to jump by 1.0 percent compared to the 2.2 percent slump originally reported for the previous month.
Excluding orders for transportation equipment, durable goods orders surged by 1.1 percent in March after falling by 0.5 percent in February. Ex-transportation orders were expected to increase by 0.6 percent.
A separate report released by the Commerce Department on Tuesday showed a steep drop in U.S. new home sales in the month of March.
The Commerce Department said new home sales plunged by 8.6 percent to an annual rate of 763,000 from an upwardly revised rate of 835,000 in February.
Economists had expected new home sales to decrease by 0.9 percent to a rate of 765,000 from the 772,000 originally reported for the previous month.
The Conference Board also released a report showing a modest decrease in U.S. consumer confidence in the month of April.
The Conference Board said its consumer confidence index edged down to 107.3 in April from an upwardly revised 107.6 in March.
Economists had expected the consumer confidence index to dip to 106.8 from the 107.2 originally reported for the previous month.
In overseas trading, stock markets across the Asia-Pacific region turned in a mixed performance during trading on Tuesday. Japan’s Nikkei 225 Index rose by 0.4 percent, while China’s Shanghai Composite Index tumbled by 1.4 percent.
The major European markets have also turned mixed on the day. While the U.K.’s FTSE 100 Index is up by 0.3 percent, the German DAX Index is down by 0.3 percent and
In the bond market, treasuries are extending the rebound seen over the past couple sessions. Subsequently, the yield on the benchmark ten-year note, which moves opposite of its price, is down by 9.6 basis points at 2.730 percent.
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