WASHINGTON (dpa-AFX) - After moving sharply lower at the start of trading on Tuesday, stocks have regained some ground over the course of the session. The major averages have climbed well off their worst levels of the day, although the Nasdaq and S&P 500 remain firmly negative.
The tech-heavy Nasdaq is currently down 358.67 points or 1.4 percent at 25,807.94 after plunging by as much as 2.5 percent. The S&P 500 is also down 67.08 points or 0.9 percent at 7,405.71, while the narrower Dow is up 19.93 points or less than a tenth of a percent at 51,732.64.
A sharp pullback by semiconductor stocks is weighing on the markets, with the Philadelphia Semiconductor Index plummeting by 7.3 percent after ending the previous session at a record closing high.
Shares of Micron Technology (MU) are plunging by 10.4 percent ahead of the release of the chipmaker's fiscal third quarter results after the close of trading on Wednesday.
Substantial weakness is also visible among computer hardware stocks, as reflected by the 4.5 percent nosedive by the NYSE Arca Computer Hardware Index.
Outside of the tech sector, gold stocks are moving sharply lower along with the price of the precious metal, dragging the NYSE Arca Gold Bugs Index down by 4 percent.
Networking and steel stocks are also seeing considerable weakness, while pharmaceutical, software and retail stocks have moved to the upside.
Daniela Hathorn, Senior Market Analyst at Capital.com said the Nasdaq is 'testing the strength of dip-buying demand that has repeatedly supported the market this year.'
'For now, the move looks more like a sentiment-driven correction than a fundamental shift in the AI and earnings narrative, but it highlights how dependent market leadership has become on a relatively small group of growth-focused stories,' she added.
In overseas trading, stock markets across the Asia-Pacific region moved sharply lower during trading on Tuesday. Japan's Nikkei 225 Index plunged by 3.6 percent, while China's Shanghai Composite Index slumped by 1.4 percent.
Most European stocks have also moved to the downside on the day. The German DAX Index is down by 0.7 percent and the French CAC 40 Index is down by 0.4 percent, although the U.K.'s FTSE 100 Index is up by 0.1 percent.
In the bond market, treasuries are regaining ground following yesterday's slump. Subsequently, the yield on the benchmark ten-year note, which moves opposite of its price, is down by 2.4 basis points at 4.485 percent.
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