After closing the previous session with gains, the major U.S. stock indices are presenting a mixed performance as trading unfolds on Wednesday. The Nasdaq has climbed to a two-month intraday high, while the Dow has declined.
As of now, the Dow is down by 96.42 points, marking a 0.5 percent drop to 42,011.80. Conversely, the S&P 500 has nudged up by 0.91 points, translating to less than a tenth of a percent gain to sit at 5,733.84. The Nasdaq has risen by 53.88 points, or 0.3 percent, to reach 18,128.40.
This mixed performance on Wall Street is attributed to traders expressing some uncertainty about the market's near-term outlook following its recent upward momentum, which has propelled the Dow and the S&P 500 to record highs.
Market participants are also in search of the next major catalyst after the Federal Reserve's decision to begin lowering interest rates next week.
Upcoming reports on weekly jobless claims, durable goods orders, and personal income and spending are expected to influence trading in the coming days.
This morning, the Commerce Department released data indicating a significant pullback in new home sales for August. New home sales fell by 4.7 percent, reaching an annual rate of 716,000, following a 10.3 percent surge to a revised rate of 751,000 in July.
Economists had projected a 5.3 percent decline in new home sales, expecting a rate of 700,000 from the initially reported 739,000 for the previous month.
On Wednesday, most major sectors are demonstrating only modest movements, contributing to the broader market's lackluster performance. Notably, oil service stocks have taken a significant hit, with the Philadelphia Oil Service Index tumbling by 2.2 percent due to a decrease in crude oil prices.
Other sectors experiencing weakness include tobacco, housing, and banking stocks, while semiconductor stocks are showing strength.
Overseas, the Asia-Pacific region's stock markets have also shown a mixed performance. Japan's Nikkei 225 Index dipped by 0.2 percent, whereas China's Shanghai Composite Index surged by 1.2 percent.
In Europe, all major markets have moved downwards for the day. The French CAC 40 Index is down by 0.5 percent, the German DAX Index by 0.4 percent, and the U.K.'s FTSE 100 Index by 0.3 percent.
In the bond market, treasuries have come under pressure after closing the previous session nearly flat. Consequently, the yield on the benchmark ten-year note, which moves inversely to its price, has risen by 4.1 basis points, reaching 3.777 percent.
