Nasdaq Showing Notable Rebound But Dow Edges Lower
Following the sharp pullback seen over the two previous sessions, technology stocks have shown a strong move back to the upside in morning trading on Wednesday. Reflecting the strength in the sector, the tech-heavy Nasdaq has surged up 155.19 points or 1.3 percent to 11,709.05.
The Nasdaq reached a record intraday high in early trading on Monday before coming under pressure and ending the day sharply lower. The index saw further downside on Tuesday, slumping by 2.9 percent over the course of the two days.
The pullback by tech stocks came as upbeat news regarding a potential coronavirus vaccine led traders to cycle out of stocks that benefited from the lockdowns imposed as a result of the pandemic.
Traders seem to be shifting back into those stocks this morning, with Zoom (ZM), Amazon (AMZN), and Apple (AAPL) posting notable gains on the day.
Meanwhile, traders are cashing on the rally by cyclical stocks seen over the past two sessions, resulting in a modest drop by the Dow.
The Dow is currently down 30.06 points or 0.1 percent at 29,390.86 after ending Tuesday’s trading at its highest closing level in nine months.
American Express (AXP), Caterpillar (CAT) and Disney (DIS) are turning in some of the Dow’s worst performances in morning trading.
Semiconductor stocks have shown a strong move back to the upside, with the Philadelphia Semiconductor Index spiking by 2.9 percent after plunging by 4.2 percent over the two previous sessions.
Bargain hunting has also contributed to considerable strength among software stocks, as reflected by the 2.5 percent jump by the Dow Jones U.S. Software Index.
Meanwhile, banking stocks have moved sharply lower over the course of the morning, resulting in a 2.3 percent slump by the KBW Bank Index. The index ended the previous session at its best closing level in five months.
Airline stocks are giving back ground, with the NYSE Arca Airline Index tumbling by 1.9 percent. The index edged slightly lower on Tuesday after soaring to a five-month closing high on Monday.
In overseas trading, stock markets across the Asia-Pacific region turned in a mixed performance during trading on Wednesday. Japan’s Nikkei 225 Index jumped by 1.8 percent, while China’s Shanghai Composite Index fell by 0.5 percent.
Meanwhile, the major European markets have all moved to the upside on the day. While the U.K.’s FTSE 100 Index has advanced by 0.9 percent, the German DAX Index and the French CAC 40 Index are both up by 0.4 percent.
The bond markets are closed on the day due to the Veterans Day holiday. In the previous session, the yield on the benchmark ten-year note, which moves opposite of its price, inched up by 1.4 basis points to a nearly eight-month closing high 0.972 percent.
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