Major Averages Close Sharply Lower, Just Off Worst Levels

(RTTNews) - After seeing a significant rebound over the course of the previous session, stocks showed a substantial move back to the downside on Wednesday. The pullback dragged the Dow down to a five-month closing low, while the S&P 500 and the Nasdaq closed at their worst levels since March and April, respectively.

Steel stocks saw substantial weakness throughout the session, reflecting concerns about the outlook for global demand. The NYSE Arca Steel Index subsequently tumbled by 4 percent to a new six-year closing low.

Mechel (MTL), Cliffs Natural Resources (CLF), and AK Steel (AKS) turned in some of the steel sector's worst performances.

Significant weakness also emerged among biotechnology stocks, as reflected by the 2.9 percent loss posted by the NYSE Arca Biotechnology Index. Celldex Therapeutics (CLDX) and Nektar Therapeutics (NKTR) posted notable losses.

Oil service stocks also saw considerable weakness on the day, dragging the Philadelphia Oil Service Index down by 2.9 percent. The weakness in the sector came as crude for August delivery fell $0.68 to $51.65 a barrel.

Semiconductor, brokerage, electronic storage, and natural gas stocks also moved notably lower, reflecting broad based selling pressure on Wall Street.

The major averages ended the session sharply lower, not far off their worst levels of the day. The Dow tumbled 261.49 points or 1.5 percent to 17,515.42, the Nasdaq plunged 87.70 points or 1.8 percent to 4,909.76 and the S&P 500 plummeted 34.65 points or 1.7 percent to 2,046.69.