WASHINGTON (dpa-AFX) - After failing to sustain an initial move to the upside, stocks have shown a lack of direction over the course of the trading session on Monday. The major averages have pulled back well off their highs of the session and have recently been bouncing back and forth across the unchanged line.
Currently, the major averages are narrowly mixed. While the S&P 500 is up 7.97 points or 0.1 percent at 6,835.38, the Nasdaq is down 10.22 points or less than a tenth of a percent at 23,184.95 and the Dow is down 14.31 points or less than a tenth of a percent at 48,443.74.
The initial strength on Wall Street came as some traders looked to pick up stocks at somewhat reduced levels following the sharp pullback on Friday.
Buying interest waned shortly after the start of trading, however, as AI spending worries continue to weigh on stocks like Broadcom (AVGO) and Oracle (ORCL).
Traders may also be reluctant to make significant moves ahead of the release of some key U.S. economic data in the coming days.
The monthly jobs report for November along with a report on retail sales in October are due to be released on Tuesday, while a report on consumer price inflation in November is scheduled to be released on Thursday.
The data could impact the outlook for interest rates following the Federal Reserve's monetary policy announcement last Wednesday.
While the Fed cut rates by another quarter point, as widely expected, officials' projections showed significant differences of opinion about further rate cuts.
Sector News
Computer hardware stocks are extending the sharp pullback seen during last Friday's session, dragging the NYSE Arca Computer Hardware Index down by 1.7 percent.
Considerable weakness is also visible among software stocks, as reflected by the 1.3 percent loss being posted by the Dow Jones U.S. Software Index.
Energy stocks are also seeing notable weakness amid a steep drop by the price of crude oil, while pharmaceutical stocks are turning in a strong performance on the day.
Other Markets
In overseas trading, stock markets across the Asia-Pacific region moved mostly lower during trading on Monday. Japan's Nikkei 225 Index tumbled by 1.3 percent, while China's Shanghai Composite Index fell by 0.7 percent.
Meanwhile, the major European markets have moved to the upside on the day. While the U.K.'s FTSE 100 Index is up by 1.1 percent, the French CAC 40 Index is up by 0.6 percent and the German DAX Index is up by 0.1 percent.
In the bond market, treasuries are regaining ground following last Friday's slump. Subsequently, the yield on the benchmark ten-year note, which moves opposite of its price, is down by 3.3 basis points at 4.161 percent.
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