Stocks have moved mostly lower during trading on Monday following the mixed performance seen last week. The major averages have all moved to the downside, with the tech-heavy Nasdaq underperforming its counterparts.
Currently, the major averages are off their worst levels of the day but remain in negative territory. The Dow is down 83.63 points or 0.4 percent at 22,265.96, the Nasdaq is down 68.13 points or 1.1 percent at 6,358.79 and the S&P 500 is down 10.38 points or 0.4 percent at 2,491.84.
The weakness on Wall Street partly reflects geopolitical concerns after North Korean Foreign Minister Ri Yong Ho claimed recent comments by President Donald Trump represent a “declaration of war.”
“Last weekend, Trump claimed that our leadership wouldn’t be around much longer, and hence, at last, he declared war on our country,” Ri said.
He added, “Given the fact that this comes from someone that is currently holding the seat of the United States presidency, this is clearly a declaration of war.”
Traders are also digesting the results of the election in Germany over the weekend. German Chancellor Angela Merkel won a fourth term in office but will have to govern with a far less stable coalition.
Internet stocks are turning in some of the market’s worst performances on the day, dragging the Dow Jones Internet Index down by 2 percent. The drop by the index comes after it ended the previous session at its best closing level since 2000.
Semiconductor, software, and computer hardware stocks are also seeing considerable weakness, contributing to the notable decline by the tech-heavy Nasdaq.
On the other hand, energy and gold stocks are seeing significant strength, benefiting from increases in the prices of crude oil and gold.
In overseas trading, stock markets across the Asia-Pacific region turned in a mixed performance during trading on Monday. Japan’s Nikkei 225 Index advanced by 0.5 percent, while Hong Kong’s Hang Seng Index plunged by 1.4 percent.
The major European markets also ended the day mixed. While the German DAX Index closed just above the unchanged line, the U.K.’s FTSE 100 Index edged down by 0.1 percent and the French CAC 40 Index dipped by 0.3 percent.
In the bond market, treasuries have moved notably higher, extending the upward move seen last Friday. As a result, the yield on the benchmark ten-year note, which moves opposite of its price, is down by 4 basis points at 2.222 percent.
by RTT Staff Writer
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