WASHINGTON (dpa-AFX) - Following the rally seen going into the end of last Friday's session, stocks have shown a lack of direction over the course of the trading day on Monday. The major averages have spent the day bouncing back and forth across the unchanged line.
Currently, the major averages are narrowly mixed. While the Dow is up 22.92 points or 0.1 percent at 43,863.83, the S&P 500 is down 3.01 points or 0.1 percent at 5,951.49 and the Nasdaq is down 54.37 points or 0.3 percent at 18,792.91.
The choppy trading on Wall Street comes amid some uncertainty about President Donald Trump's proposed tariffs on Mexico and Canada.
During an appearance on Fox News over the weekend, Commerce Secretary Howard Lutnick described the proposed 25 percent tariffs on imports from Mexico and Canada as 'fluid' but said the additional 10 percent tariff on imports from China is 'set.'
Traders are also digesting the latest U.S. economic data, including a report from the Institute for Supply Management showing its reading on U.S. manufacturing activity edged slightly lower in February but still indicated growth in the sector for the second straight month.
The ISM said its manufacturing PMI slipped to 50.3 in February after rising to 50.9 in January, although a reading above 50 still indicates growth. Economists had expected the index to dip to 50.5.
The report also said the prices index surged to 62.4 in February from 54.9 in January, reflecting the largest month-over-month increase since January 2024.
'Prices growth accelerated due to tariffs, causing new order placement backlogs, supplier delivery stoppages and manufacturing inventory impacts,' said Timothy R. Fiore, Chair of the ISM Manufacturing Business Survey Committee.
He added, 'Although tariffs do not go into force until mid-March, spot commodity prices have already risen about 20 percent.'
Traders may also be reluctant to make more significant moves ahead of the release of the Labor Department's closely watched monthly jobs report on Friday.
Sector News
Most of the major sectors are showing only modest moves on the day, contributing to the lackluster performance by the broader markets.
Steel stocks have shown a strong move to the upside, however, with the NYSE Arca Steel Index jumping by 1.8 percent.
Significant strength is also visible among gold stocks, as reflected by the 1.5 percent gain being posted by the NYSE Arca Gold Bugs Index. The strength among gold stocks comes amid a sharp increase by the price of the precious metal.
Telecom, airline and commercial real estate stocks are also seeing some strength, while oil stocks have moved to the downside along with the price of crude oil.
Other Markets
In overseas trading, stock markets across the Asia-Pacific region moved mostly higher during trading on Monday. Japan's Nikkei 225 Index shot up by 1.7 percent, while Hong Kong's Hang Seng Index rose by 0.3 percent.
The major European markets have also shown strong moves to the upside on the day. While the German DAX Index is up by 2.7 percent, the French CAC 40 Index is up by 1.4 percent and the U.K.'s FTSE 100 Index is up by 1.0 percent.
In the bond market, treasuries have moved higher, extending a recent upward trend. Subsequently, the yield on the benchmark ten-year note, which moves opposite of its price, is down by 2.8 basis points at 4.201 percent.
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