Currently, the major averages are firmly in negative territory but off their worst levels of the day. The Dow is down 61.38 points or 0.4% at 16,507.90, the Nasdaq is down 11.74 points or 0.3% at 4,372.15 and the S&P 500 is down 7.89 points or 0.4% at 1,931.10.
The weakness on
With the bigger than expected increase, the ISM said the non-manufacturing index reached its highest reading since the revised survey's inception in January of 2008.
A separate report from the
While the data points to an upbeat economic outlook, it has also added to speculation that the Federal Reserve may raise interest rates sooner than anticipated.
"While of course something to root for, it again brings the policy of the Federal Reserve front and center and that is why good economic news is not translating into better stock market performance," he added.
Negative sentiment has also been generated by news that Target (TGT) lowered its second quarter earnings guidance, with the retail giant falling by 2.9% on the day.
Target attributed the lower guidance to expenses related to last year's data breach as well as promotional markdowns at its US stores and softer than expected sales in
After turning in some of the best performances in the previous session, energy stocks have shown a significant move back to the downside.
Reflecting the weakness in the energy sector, the Philadelphia Oil Service Index and the NYSE Arca Oil & Gas Index have fallen by 1.5% and 1.3%, respectively.
The pullback by energy stocks comes amid a notable decrease by the price of crude oil, with crude for September delivery falling
Gold stocks have also moved to the downside along with the price of the precious metal, although selling pressure has remained relatively subdued.
In overseas trading, stock markets across the
Meanwhile, the major European markets all moved to the upside on the day. While the
In the bond market, treasuries are seeing modest weakness on the heels of the upbeat economic data. As a result, the yield on the benchmark ten-year note, which moves opposite of its price, is up by 2.5 basis points at 2.516%.
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