FX.co ★ U.S. Stocks Move To The Downside Amid Pullback By Nvidia

Stocks experienced a decline on Wednesday, retreating after closing the previous session mostly higher. The major indices all slipped into negative territory, although the Dow Jones is showing a relatively minor decrease.

Despite having rebounded from their lowest levels earlier in the day, the major indices remain in negative numbers. Currently, the Dow Jones is down 52.77 points, or 0.1%, at 43,216.17. The Nasdaq Composite has fallen 123.44 points, or 0.7%, to 18,864.03, while the S&P 500 has decreased by 31.11 points, or 0.5%, to 5,885.87.

A downturn in Nvidia (NVDA) shares is exerting pressure on the markets, with the AI sector leader dropping 1.1% after surging 4.9% on Tuesday. Nvidia, which recently emerged as a major market driver, is facing pressure as it prepares to release its fiscal third-quarter results following the close of today’s trading.

Wall Street's weakness is also due to a significant drop in Target (TGT) shares, which have plummeted 20.8% following the company's report of weaker than expected third-quarter results and a lowered full-year outlook.

Overall market activity appears somewhat subdued, likely due to a lack of significant U.S. economic data, leading some traders to remain on the sidelines. Furthermore, traders may be hesitant to make major moves given rising geopolitical tensions between Ukraine and Russia.

Sector Analysis

The retail sector is under pressure, dominated by Target's decline, leading to a 1.2% drop in the Dow Jones U.S. Retail Index. Significant declines are also seen in computer hardware stocks, as evidenced by the 1.2% fall in the NYSE Arca Computer Hardware Index. Shares of Super Micro Computer (SMCI) are contributing to the sector’s weakness after previously significant gains.

Conversely, biotechnology stocks are performing well, pushing the NYSE Arca Biotechnology Index up 1.2%.

Global Markets

In overseas markets, Asia-Pacific stock performance was mixed on Wednesday. Japan's Nikkei 225 Index slipped 0.2%, while China's Shanghai Composite Index rose by 0.7%.

In Europe, major markets have also trended downward. The U.K.'s FTSE 100 Index is down 0.2%, and both France’s CAC 40 Index and Germany's DAX Index have declined by 0.4%.

In the bond market, treasuries are retreating after closing positively in the previous session. Consequently, the yield on the benchmark ten-year note, which inversely correlates with its price, has risen by 2.3 basis points to 4.402 percent.