U.S. Stocks Close Mixed Following Lackluster Session

(RTTNews) - After an early move to the downside, stocks turned in a relatively lackluster performance over the course of the trading session on Wednesday. The major averages bounced back and forth across the unchanged line before closing mixed.

While the Nasdaq pulled back well off its best levels of the day, the tech-heavy index still closed up 36.08 points or 0.3 percent at 13,591.75. Meanwhile, the S&P 500 edged down 1.55 points or less than a tenth of a percent to 4,376.86 and the Dow dipped 74.08 points or 0.2 percent to 33,852.66.

Weakness among semiconductor stocks weighed on the markets in early trading after a report from the Wall Street Journal said the Biden administration is considering new restrictions on exports of artificial intelligence chips to China.

Citing people familiar with the situation, the Journal said the Commerce Department could move as soon as early next month to stop the shipments of chips to customers in China and other countries of concern without first obtaining a license.

The Journal noted the potential restrictions come amid concerns China could use AI chips for weapon development and hacking.

Selling pressure waned shortly after the start of trading, however, with strong gains by stocks like Netflix (NFLX) and Tesla (TSLA) contributing to the turnaround by the Nasdaq.

Traders also kept an eye on remarks by Federal Reserve Chair Jerome Powell during a panel discussion at the European Central Bank Forum on Central Banking in Sintra, Portugal.

Powell reiterated that he expects additional interest rate hikes in the months ahead and said raising rates at consecutive meetings is not off the table

The Fed Chief was joined by European Central Bank President Christine Lagarde, Bank of England Governor Andrew Bailey and Bank of Japan Governor Kazuo Ueda.

Sector News

While most of the major sectors showed only modest moves on the day, utilities stocks saw considerable weakness, dragging the Dow Jones Utility Average down by 1.6 percent.

Gold stocks also moved notably lower along with the price of the precious metal, with the NYSE Arca Gold Bugs Index falling by 1.1 percent to its lowest closing level in three months.

Steel and semiconductor stocks also moved to the downside, while some strength was visible among networking and airline stocks.

Other Markets

In overseas trading, stock markets across the Asia-Pacific region turned in another mixed performance during trading on Wednesday. Japan's Nikkei 225 Index spiked by 2.0 percent, while South Korea's Kospi slid by 0.7 percent.

Meanwhile, the major European markets have all moved to the upside on the day. While the French CAC 40 Index jumped by 1.0 percent, the German DAX Index and the U.K.'s FTSE 100 Index climbed by 0.6 percent and 0.5 percent, respectively.

In the bond market, treasuries climbed firmly into positive territory over the course of the session. As a result, the yield on the benchmark ten-year note, which moves opposite of its price, fell by 5.8 basis points to 3.710 percent.

Looking Ahead

Trading on Thursday may be impacted by reaction to reports on weekly jobless claims and pending home sales as well as the final reading on first quarter GDP.