WASHINGTON (dpa-AFX) - Stocks showed a strong move to the upside in early trading on Monday but gave back ground over the course of the session. The major averages pulled back well off their highs of the session, with the Nasdaq and the S&P 500 ending the day in negative territory.
The Nasdaq slid 153.72 points or 0.7 percent to 20,794.64 and the S&P 500 fell 25.13 points or 0.4 percent to 6,343.72, dropping to their lowest closing levels in nearly eight months.
The narrower Dow, on the other hand, inched up 49.50 points or 0.1 percent to 45,216.14 after briefly dipping into the red in the final hour of trading.
Bargain hunting contributed to the initial strength on Wall Street, as some traders looked to pick up stocks at reduced levels following recent weakness.
Optimistic comments from President Donald Trump about the war in the Middle East also generated some early buying interest.
Trump claimed in a post on Truth Social this morning that the U.S. has made 'great progress' in discussions with a 'new, and more reasonable, regime' to end military operations in Iran.
However, Trump warned that if a deal not reached shortly, the U.S. will 'conclude our lovely 'stay' in Iran by blowing up and completely obliterating all of their Electric Generating Plants, Oil Wells and Kharg Island (and possibly all desalinization plants!)'
Buying interest waned over the course of the session, however, as the price of crude oil saw further upside amid ongoing concerns about the impact of the Middle East war.
U.S. crude oil futures have surged by more than 3 percent on the day, closing above $100 a barrel for the first time since July 2022.
Sector News
Semiconductor stocks moved sharply lower over the course of the session, dragging the Philadelphia Semiconductor Index down by 4.2 percent to its lowest closing level in almost three months.
Computer hardware and networking stocks also saw substantial weakness, contributing to the slump by the tech-heavy Nasdaq.
Despite the continued surge by the price of crude oil, oil service stocks also showed a significant move to the downside, with the Philadelphia Oil Service Index plunging by 3.3 percent.
Airline stocks also saw considerable weakness on the day, while biotechnology and pharmaceutical stocks turned in strong performances.
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 2.8 percent, while Hong Kong's Hang Seng Index fell by 0.8 percent.
Meanwhile, the major European markets moved to the upside on the day. While the U.K.'s FTSE 100 Index shot up by 1.6 percent, the German DAX Index jumped by 1.2 percent and the French CAC 40 Index advanced by 0.9 percent.
In the bond market, treasuries showed a significant rebound following the weakness seen over the two previous sessions. Subsequently, the yield on the benchmark ten-year note, which moves opposite of its price, plunged 9.8 basis points to 4.342 percent.
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