WASHINGTON (dpa-AFX) - Stocks have moved mostly lower during trading on Monday, moving back to the downside following the rebound seen during last Friday's session. The major averages have all slid into negative territory, with the tech-heavy Nasdaq leading the pullback.
Currently, the major averages are just off their lows of the session. The Nasdaq is down 282.12 points or 1.1 percent at 26,050.91, the S&P 500 is down 62.26 points or 0.8 percent at 7,594.72 and the Dow is down 264.80 points or 0.5 percent at 52,308.49.
The pullback on Wall Street comes amid a substantial rebound by the price of crude oil, with U.S. crude oil futures spiking by 3.7 percent after tumbling by 2.4 percent last Friday.
Renewed supply concerns have contributed to the surge by crude oil prices Saudi Arabia closed a critical pipeline that bypasses the Strait of Hormuz following a drone attack.
News that a planned meeting in Oman between Iran and Gulf states over reopening Hormuz has been postponed has also contributed to the increase in the price of crude oil.
Selling pressure in the tech sector has also been generated amid renewed worries about artificial intelligence after industry leaders called for a slowdown in the pace of AI development.
'We must slow the pace at which we improve the capabilities of AI models. Progress will still seem fast, and we must make wise use of the time we gain,' Anthropic CEO Dario Amodei wrote in a blog post.
'The measures I propose to advance the frontier at a safe pace will not be easy,' he added. 'But I believe we owe it to humanity to try.'
Traders are also looking ahead to the Federal Reserve's highly anticipated monetary policy decision later this week.
With oil prices surging and recent data pointing to stick inflation, CME Group's FedWatch tool is currently indicating a nearly 90 percent chance the Fed will raise rates by a quarter point.
Sector News
Semiconductor stocks have moved sharply lower amid concerns about the outlook for AI, resulting in a 5.7 percent nosedive by the Philadelphia Semiconductor Index.
Substantial weakness is also visible among computer hardware stocks, as reflected by the 5.2 percent plunge by the NYSE Arca Computer Hardware Index.
Gold stocks are also seeing significant weakness amid a steep drop by the price of the precious metal, dragging the NYSE Arca Gold Bugs Index down by 3.7 percent.
Oil service, networking and airline stocks have also shown notable moves to the downside, while software, pharmaceutical and oil producer stocks are bucking the downtrend.
Other Markets
In overseas trading, stock markets across the Asia-Pacific region turned in a mixed performance during trading on Monday. Japan's Nikkei 225 Index slid by 0.8 percent, while Hong Kong's Hang Seng Index climbed by 0.5 percent.
Meanwhile, most European stocks have moved to the downside on the day. The French CAC 40 Index is down by 1.1 percent and the German DAX Index is down by 0.8 percent, although the U.K.'s FTSE 100 Index has bucked the downtrend and risen by 0.3 percent.
In the bond market, treasuries are extending the downward move seen over the past several sessions. Subsequently, the yield on the benchmark ten-year note, which moves opposite of its price, is up by 3.0 basis points at 5.00 percent.
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