WASHINGTON (dpa-AFX) - After coming under pressure early in the session, stocks have regained some ground over the course of the trading day on Wednesday but remain mostly lower.
Currently, the major averages are off their worst levels of the day but still firmly in negative territory. The Dow is down 169.39 points or 0.5 percent at 37,545.65, the Nasdaq is down 128.71 points or 0.9 percent at 14,637.23 and the S&P 500 is down 25.84 points or 0.5 percent at 4,716.99.
The early weakness on Wall Street partly reflected renewed uncertainty about the outlook for interest rates ahead of the release of the minutes of the Federal Reserve's latest monetary policy meeting later this afternoon.
Treasury yields initially saw further upside ahead of the release of the minutes amid worries Fed officials will signal a more cautious approach to future rate decisions.
Selling pressure has waned over the course of the session, however, as yields have shown a notable downturn as the day has progressed.
Ahead of the release of the minutes Richmond Federal Reserve Tom Barkin said the U.S. economy heading for a soft landing is 'increasingly conceivable but in no way inevitable.'
'The airport is on the horizon. But landing a plane isn't easy, especially when the outlook is foggy, and headwinds and tailwinds can affect your course,' Barkin said in prepared remarks to the Raleigh Chamber of Commerce: Launch 2024. 'It's easy to oversteer and do too much or understeer and do too little.'
Barkin also noted the U.S. economy continues to defy expectations, suggesting consumer spending is unlikely to pull back as long as equity values are high and the labor market remains tight.
'Longer-term rates have dropped recently, which could stimulate demand in interest-sensitive sectors like housing,' Barkin said. 'While you might think this would be a first-class problem, strong demand isn't the solution to above-target inflation. That's why the potential for additional rate hikes remains on the table.'
On the U.S. economic front, a report released by the Institute for Supply Management showed U.S. manufacturing activity contracted at a slightly slower rate in the month of December.
The ISM said its manufacturing PMI rose to 47.4 in December from 46.7 in November, but a reading below 50 still indicates contraction. Economists had expected the index to inch up to 47.1.
The Labor Department also released a report showing job openings in the U.S. edged down from an upwardly revised level in the month of November.
Sector News
Airline stocks continue to see substantial weakness on the day, resulting in a 3.0 percent nosedive by the NYSE Arca Airline Index.
Significant weakness also remains visible among gold stocks, as reflected by the 2.5 percent slump by the NYSE Arca Gold Bugs Index.
The weakness among gold stocks comes amid a steep drop by the price of the precious metal, with gold for February delivery tumbling $30.80 or 1.5percent to $2,042.60 an ounce.
Semiconductor, commercial estate and banking stocks are also seeing considerable weakness, while energy and pharmaceutical stocks have moved notably higher over the course of the session.
Other Markets
In overseas trading, stock markets across the Asia-Pacific region moved mostly lower during trading on Wednesday, with the Japanese markets still closed. Hong Kong's Hang Seng Index slid by 0.9 percent, while South Korea's Kospi plunged by 2.3 percent.
The major European markets also move to the downside on the day. While the U.K.'s FTSE 100 Index fell by 0.5 percent, the German DAX Index and the French CAC 40 Index tumbled by 1.4 percent and 1.6 percent, respectively.
In the bond, treasuries have shown a significant rebound over the course of the session after seeing early weakness. As a result, the yield on the benchmark ten-year note, which moves opposite of its price, is down by 2.0 basis points at 3.926 percent.
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