U.S. Stocks Moving Back To The Downside Following Recent Rebound

Stocks have moved mostly lower over the course of morning trading on Monday, giving back ground following the strong upward move seen last week. The major averages have all moved to the downside, with the tech-heavy Nasdaq leading the way lower.

In recent trading, the major averages have fallen to new lows for the session. The Dow is down 199.11 points or 0.6 percent at 34,555.82, the Nasdaq is down 164.79 points or 1.2 percent at 13,729.05 and the S&P 500 is down 17.61 points or 0.4 percent at 4,445.51.

The pullback on Wall Street partly reflects profit taking, as lingering concerns about the Russia-Ukraine conflict and higher oil prices inspire some traders to cash in on last week’s gains.

Last week, the major averages had their best week since November 2020. The Nasdaq soared by 8.2 percent, while the S&P 500 and the Dow spiked by 6.2 percent and 5.5 percent, respectively.

The rally seen last week helped lift the major averages well off their recent lows, although they also remain well off their record highs.

Traders are also keeping an eye on the latest developments in Ukraine, with peace talks with Russia failing to make substantial progress on key issues.

Among individual stocks, Boeing (BA) has come under pressure after one of the aerospace giant’s 737-800 planes operated by China Eastern Airlines crashed in southern China with 132 people aboard.

Shares of Nielsen Holdings (NLSN) have also moved notably lower after the TV ratings company rejected an unsolicited acquisition proposal from a private equity consortium that valued the company at $25.40 per share.

Meanwhile, shares of Anaplan (PLAN) are soaring after the business planning software company agreed to be acquired by private-equity firm Thoma Bravo for $66.00 per share in an all-cash transaction valued at approximately $10.7 billion.

Insurance company Alleghany (Y) is also spiking after agreeing to be acquired by Warren Buffett’s Berkshire Hathaway (BRK.B) for $848.02 a share in cash, or a total equity value of about $11.6 billion.

Airline stocks have shown a significant move to the downside in morning trading, dragging the NYSE Arca Airline Index down by 3 percent.

Considerable weakness has also emerged among semiconductor stocks, as reflected by the 1.9 percent drop by the Philadelphia Semiconductor Index.

Housing, tobacco and brokerage stocks have also moved notably lower, while energy stocks are surging along with the price of crude oil.

With crude for April delivery spiking $6.02 to $110.72 a barrel, the Philadelphia Oil Service Index is up by 4.6 percent and the NYSE Arca Oil Index is up by 3.8 percent.

Gold, steel and natural gas stocks are also seeing substantial strength on the day, helping to limit the downside for broader markets.

In overseas trading, stock markets across the Asia-Pacific region turned in a mixed performance on Monday, with the Japanese markets closed on the day. While China’s Shanghai Composite Index inched up by 0.1 percent, Hong Kong’s Hang Seng Index slid by 0.9 percent.

The major European markets have also turned mixed on the day. While the U.K.’s FTSE 100 Index is up by 0.5 percent, the German DAX Index is down by 0.5 percent and the French CAC 40 Index is down by 0.7 percent.

In the bond market, treasuries have shown a significant move back to the downside following the rebound seen last Friday. As a result, the yield on the benchmark ten-year note, which moves opposite of its price, is up by 9.5 basis points at 2.243 percent.

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