WASHINGTON (dpa-AFX) - Stocks have shown a lack of direction over the course of the trading session, with the major averages bouncing back and forth across the unchanged line.
Currently, the major averages are turning in a mixed performance. While the Dow is up 266.79 points or 0.5 percent 50,728.47, the S&P 500 is down 2.08 points or less than a tenth of a percent at 7,517.04 and the Nasdaq is down 50.08 points or 0.2 percent at 26,606.10.
The choppy trading on Wall Street comes as traders express some uncertainty about the near-term outlook for the markets following recent strength.
The Nasdaq and the S&P 500 advanced to record highs on Tuesday amid a tech sector rally, although the narrower Dow finished the day modestly lower.
Traders may also be waiting for further developments with a regard to a potential U.S.-Iran peace deal, although confidence remains high that an agreement will be reached soon.
A report from Reuters said Iranian state TV ?had obtained a draft of an initial, unofficial framework for a memorandum of understanding between the U.S. and Iran and the United States
Under the framework, Iran would restore commercial shipping through the Strait of Hormuz to ?pre-war levels within a month, Reuters said.
The report has contributed to an extended slump by the price of crude oil, with U.S. crude oil futures plunging by more than 3 percent.
Traders may also be somewhat reluctant to make significant moves ahead of the release of key U.S. economic data on Thursday, including the Federal Reserve's preferred readings on consumer price inflation.
Sector News
Despite the lackluster performance by the broader markets, airline stocks are extending the substantial upward move seen over the past several sessions, with the NYSE Arca Airline Index surging by 2.7 percent.
Significant strength is also visible among housing stocks, as reflected by the 2 percent jump by the Philadelphia Housing Sector Index.
Telecom, pharmaceutical and retail stocks are also seeing notable strength, while oil service stocks are moving sharply lower along with the price of crude oil, dragging the Philadelphia Oil Service Index down by 3.1 percent.
Semiconductor stocks have also come under pressure following yesterday's surge, resulting in a 2.7 percent slump by the Philadelphia Semiconductor Index.
Gold, networking and brokerage stocks are also seeing considerable weakness, offsetting the strength in the aforementioned sectors.
Other Markets
In overseas trading, stock markets across the Asia-Pacific region turned in a mixed performance on Wednesday. Japan's Nikkei 225 Index closed slightly higher and South Korea's Kospi surged by 2.3 percent, while China's Shanghai Composite Index slumped by 1.3 percent.
The major European markets have also turned mixed on the day. While the U.K.'s FTSE 100 Index is down by 0.1 percent, the German DAX Index is just above the unchanged line and the French CAC 40 Index is up by 0.5 percent.
In the bond market, treasuries are seeing modest strength, extending the rally seen in the previous session. Subsequently, the yield on the benchmark ten-year note, which moves opposite of its price, is down by 1.8 basis points at 4.475 percent.
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