WASHINGTON (dpa-AFX) - After extending yesterday's rebound early in the session, stocks gave back ground over the course of the trading day on Wednesday. The major averages pulled back well off their early highs and into negative territory.
The major averages ended the day just off their lows of the session. The Nasdaq slumped 171.05 points or 1.1 percent to 16,195.81, the S&P 500 slid 40.53 points or 0.8 percent to 5,199.50 and the Dow fell 234.21 points or 0.6 percent to 38,763.45.
Stocks initially continued to benefit from bargain hunting, as traders picked up stocks at relatively reduced levels following the recent sell-off.
Buying interest waned shortly after the start of trading, however, as concerns about the outlook for the U.S. economy continued to hang over the markets.
'We expect further volatility in the near-term and look to the 5,000 range as important support for the Index, as it represents key retracement levels and the 200-DMA,' John Lynch, Chief Investment Officer for Comerica Wealth Management said of the S&P 500. 'We continue to view the S&P 500 to be fairly valued in the 5,250 range by yearend.'
Among individual stocks, shares of Super Micro Computer (SMCI) plunged by 20.1 percent after the technology company reported weaker than expected fiscal fourth quarter earnings.
Disney (DIS) also showed a significant move to the downside even though the entertainment giant reported better than expected fiscal third quarter earnings.
Meanwhile, grocery delivery company Instacart (CART) surged after reporting second quarter results that exceeded analyst estimates on both the top and bottom lines.
Sector News
Gold stocks moved sharply lower over the course of the session, dragging the NYSE Arca Gold Bugs Index down by 3.2 percent to its lowest closing level in a month. The weakness among gold stocks came despite a modest increase by the price of the precious metal.
Substantial weakness also emerged among semiconductor stocks, as reflected by the 3.1 percent slump by the Philadelphia Semiconductor Index.
Computer hardware stocks also showed a considerable move to the downside on the day, with the NYSE Arca Computer Hardware Index tumbling by 2.8 percent.
Housing, airline and pharmaceutical stocks also showed notable moves to the downside, while significant strength remained visible among telecom stocks.
Other Markets
In overseas trading, stock markets across the Asia-Pacific region moved mostly higher during trading on Wednesday. Japan's Nikkei 225 Index jumped by 1.2 percent, while Hong Kong's Hang Seng Index surged by 1.4 percent.
The major European markets also showed strong moves to the upside on the day. While the French CAC 40 Index soared by 1.9 percent, the U.K.'s FTSE 100 Index spiked by 1.8 percent and the German DAX Index shot up by 1.5 percent.
In the bond market, treasuries moved notably lower, extending the pullback seen in the previous session. As a result, the yield on the benchmark ten-year note, which moves opposite of its price, jumped 8.0 basis points to 3.968 percent.
Looking Ahead
A report on weekly jobless claims is likely to attract attention on Thursday, while trading may also be impacted by reaction to the latest corporate earnings news.
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