{"id":40446,"date":"2023-11-07T16:08:38","date_gmt":"2023-11-07T16:08:38","guid":{"rendered":"https:\/\/www.pantheregroup.com\/2023\/11\/07\/u-s-stocks-turn-positive-after-initial-move-to-the-downside-2\/"},"modified":"2023-11-07T16:08:38","modified_gmt":"2023-11-07T16:08:38","slug":"u-s-stocks-turn-positive-after-initial-move-to-the-downside-2","status":"publish","type":"post","link":"https:\/\/www.pantheregroup.com\/2023\/11\/07\/u-s-stocks-turn-positive-after-initial-move-to-the-downside-2\/","title":{"rendered":"U.S. Stocks Turn Positive After Initial Move To The Downside"},"content":{"rendered":"
<\/div>

\n<\/p>\n

\n

After an initial move to the downside, stocks have shown a notable turnaround over the course of the trading session on Tuesday. The major averages have all climbed into positive territory, with the tech-heavy Nasdaq leading the way higher.<\/p>\n

Currently, the major averages are just off their highs of the session. The Nasdaq is up 129.54 points or 1.0 percent at 13,648.32, the S&P 500 is up 16.11 points or 0.4 percent at 4,382.09 and the Dow is up 73.71 points or 0.2 percent at 34,169.57.<\/p>\n

Profit taking contributed to the initial weakness on Wall Street, as some traders looked to cash in on the recent strength in the markets<\/span>.<\/p>\n

Selling pressure waned shortly after the start of trading, however, with continued optimism about the outlook for interest rates contributing to the subsequent rebound.<\/p>\n

The rebound by stocks also comes as treasury yields have shown a notable move back to the downside after surging in the previous session.<\/p>\n

Meanwhile, traders are also looking ahead to speeches by Federal Reserve Chair Jerome Powell on Wednesday and Thursday.<\/p>\n

Powell is due to deliver opening remarks at the Division of Research and Statistics Centennial Conference on Wednesday and participate in a policy panel discussion before the 24th Jacques Polak Annual Research Conference on Thursday.<\/p>\n

Traders are likely to pay close attention to Powell’s remarks, looking for additional confirmation the Fed will leave interest rates unchanged for the foreseeable future.<\/p>\n

In U.S. economic news, a report released by the Commerce Department showed the U.S. trade deficit widened by more than expected in the month of September.<\/p>\n

The Commerce Department said the trade deficit increased to $61.5 billion in September from a revised $58.7 billion in August. <\/p>\n

Economists had expected the trade deficit to climb to $60.2 billion from the $58.3 billion originally reported for the previous month.<\/p>\n

The wider than expected deficit came as the value of imports surged by 2.7 percent to $322.7 billion, while the value of exports jumped by 2.2 percent to $261.1 billion.<\/p>\n

Sector News<\/p>\n

Software stocks have moved sharply higher on the day, driving the Dow Jones U.S. Software Index up by 2.1 percent to its best intraday level in well over three months.<\/p>\n

Significant strength has also emerged among semiconductor stocks, as reflected by the 1.3 percent gain being posted by the Philadelphia Semiconductor Index. <\/p>\n

Housing, retail and biotechnology stocks are also seeing notable strength, while gold and energy stocks have shown substantial moves to the downside.<\/p>\n

With the price of gold for December delivery falling $18.90 to $1,969.70 an ounce, the NYSE Arca Gold Bugs Index is down by 3.2 percent.<\/p>\n

The Philadelphia Oil Service Index and the NYSE Arca Oil Index are also tumbling by 3.0 percent and 2.5 percent, respectively, amid a steep drop by the price of crude oil.<\/p>\n

Other Markets<\/p>\n

In overseas trading, stock markets across the Asia-Pacific region moved mostly lower during trading on Tuesday. Japan’s Nikkei 225 Index tumbled by 1.3 percent, while Hong Kong’s Hang Seng Index dove by 1.7 percent.<\/p>\n

Meanwhile, the major European markets are turning in a mixed performance on the day. While the German DAX Index is up by 0.2 percent, the U.K.’s FTSE 100 Index is just below the unchanged line and the French CAC 40 Index is down by 0.3 percent.<\/p>\n

In the bond market, treasuries are moving back to the upside following the sharp pullback seen on Monday. Subsequently, the yield on the benchmark ten-year note, which moves opposite of its price, is down by 7.5 basis points at 4.587 percent. <\/p>\n<\/p>\n<\/div>\n