WASHINGTON (dpa-AFX) - Stocks have moved moderately lower in morning trading on Tuesday, giving back ground after moving sharply higher over the two previous sessions. The major averages have all moved to the downside, although selling pressure has remained relatively subdued.
In recent trading, the major averages have climbed off their worst levels but remain in the red. The Dow is down 65.39 points or 0.3 percent at 26,070.40, the Nasdaq is down 17.36 points or 0.2 percent at 7,985.46 and the S&P 500 is down 10.40 points or 0.4 percent at 2,913.25.
The pullback on Wall Street may be partly due to profit taking, as traders cash in on the strong gains posted over the past two sessions.
However, traders seem somewhat reluctant to make more significant moves ahead of the release of the minutes of the Federal Reserve's late-July meeting on Wednesday.
The minutes, along with Fed Chairman Jerome Powell's speech on Friday, may shed additional light on the outlook for interest rates.
The Fed cut interest rates by 25 basis points last month and CME Group's FedWatch tool currently indicates a 90.4 percent chance of another 25 basis point rate cut in September.
Powell suggested that the July rate cut should not be seen as 'the beginning of a lengthy cutting cycle,' but President Donald Trump has been putting intense pressure on the Fed to continue cutting rates.
Trump claimed in a post on Twitter on Monday that the U.S. economy is very strong in spite of Powell's 'horrendous lack of vision.'
'The Fed Rate, over a fairly short period of time, should be reduced by at least 100 basis points, with perhaps some quantitative easing as well,' Trump tweeted.
He added, 'If that happened, our Economy would be even better, and the World Economy would be greatly and quickly enhanced-good for everyone!'
After moving sharply higher over the two previous sessions, oil service stocks have shown a significant move back to the downside in morning trading.
The Philadelphia Oil Service Index has fallen by 1.7 percent, with a pullback by the price of crude oil weighing on the sector.
Tobacco, natural gas, chemical, and banking stocks are also seeing notable weakness, while gold stocks have shown a strong move to the upside.
In overseas trading, stock markets across the Asia-Pacific region turned in a mixed performance during trading on Tuesday. Japan's Nikkei 225 Index climbed by 0.6 percent, while China's Shanghai Composite Index edged down by 0.1 percent.
Meanwhile, the major European markets have all moved to the downside. The U.K.'s FTSE 100 Index, the German DAX Index and the French CAC 40 Index have all slid by 0.7 percent.
In the bond market, treasuries are rebounding following the pullback seen over the two previous sessions. Subsequently, the yield on the benchmark ten-year note, which moves opposite of its price, is down by 3.6 basis points at 1.562 percent.
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