WASHINGTON (dpa-AFX) - After coming under pressure earlier in the session, stocks have regained some ground but remain mostly lower in early afternoon trading on Monday. The major averages remain in the red, partly offsetting the strong gains posted last week.
Currently, the major averages are in negative territory but well off their worst levels of the day. The Dow is down 434.71 points or 1.8 percent at 23,284.66, the Nasdaq is down 54.75 points or 0.7 percent at 8,098.82 and the S&P 500 is down 45.33 points or 1.6 percent at 2,744.49.
The early weakness on Wall Street was partly due to profit taking, as some traders cashed in on last week's rally, which lifted the major averages to their best levels in nearly a month.
Lingering concerns about the economic impact of the coronavirus pandemic also weighedon the markets, with the number of daily deaths from the disease in the U.S. reaching a record high of more than 2,000 on Friday.
However, White House health advisor Dr. Anthony Fauci expressed 'cautious optimism' the outbreak is slowing down in an interview with CNN on Sunday.
Fauci noted that hospitalizations and intensive care admissions in the New York metropolitan area have not only flattened but stated to turn the corner.
'So, that's where we're hopeful. And it's cautious optimism that we're seeing that decrease,' Fauci said. 'And if you look at the patterns of the curves in other countries, once you turn that corner, hopefully, we will see a very sharp decline.'
At the same time, Fauci cautioned that reopening the country will not be like flipping a light switch and will depend on the situation in different parts of the country.
New York Governor Andrew Cuomo also recently suggested that 'the worst is over' if people 'continue to be smart going forward.'
'We're controlling the spread,' Cuomo said at a press conference on Monday. 'The worst can be over, and is over, unless we do something reckless.'
Sector News
Housing stocks have climbed off their worst levels of the day but continue to see considerable weakness in early afternoon trading.
Reflecting the weakness in the sector, the Philadelphia Housing Sector Index is down by 4.1 percent after skyrocketing by nearly 30 percent last week.
Substantial weakness also remains visible among banking stocks, as reflected by the 3.2 percent nosedive by the KBW Bank Index.
Commercial real estate, chemical, brokerage and utilities stocks are also seeing considerable weakness after turning in some of the market's best performances last week.
On the other hand, gold stocks have moved sharply higher over the course of the session, driving the NYSE Arca Gold Bugs Index up by 4.7 percent.
The rally by gold stocks comes as the price of the precious metal has turned higher after moving to the downside earlier in the session, with gold for June delivery rising $5.20 to $1,758 an ounce.
Retail stocks have also shown a notable move to the upside as the day has progressed, driving the Dow Jones U.S. Retail Index up by 1.7 percent.
Other Markets
In overseas trading, stock markets across the Asia-Pacific region moved mostly lower on Monday, although several major markets were closed for holidays. Japan's Nikkei 225 Index tumbled by 2.3 percent, while China's Shanghai Composite Index fell by 0.5 percent.
Meanwhile, the European markets remained closed today for Easter Monday.
In the bond market, treasuries have climbed back near the unchanged line after seeing early weakness. Subsequently, the yield on the benchmark ten-year note, which moves opposite of its price, is up by less than a basis point at 0.733 percent.
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