Stocks Regaining Ground Following Yesterday's Pullback - U.S. Commentary

(RTTNews) - Stocks have moved mostly higher in morning trading on Wednesday, regaining some ground following the sharp pullback seen in the previous session.

In recent trading, the major averages have pulled back off their highs, although they remain positive. The Dow is up 4.55 points or 0.3 percent at 18,115.30, the Nasdaq is up 33.42 points or 0.7 percent at 5,188.68 and the S&P 500 is up 7.12 points or 0.3 percent at 2,134.14.

The strength on Wall Street may be partly due to bargain hunting following the broad based sell-off that was seen on Tuesday.

The steep drop seen in the previous session dragged the Dow and the S&P 500 down to their lowest closing levels in two months.

Nonetheless, traders seem somewhat reluctant to make more significant moves, taking a break following the recent volatility.

Continued uncertainty about the outlook for interest rates may also be keeping some traders on the sidelines ahead of next week's Federal Reserve meeting.

The Fed is scheduled to hold a two-day meeting starting next Tuesday and announce its policy decision next Wednesday afternoon.

The central bank is also due to reveal its updated economic forecasts followed by a press conference by Fed Chair Janet Yellen.

On the U.S. economic front, the Labor Department released a report showing a modest drop in import prices in the month of August. The report also showed a notable decline in export prices during the month.

The report said import prices dipped by 0.2 percent in August after inching up by 0.1 percent in July. Economists had expected import prices to edge down by 0.1 percent.

Additionally, the Labor Department said export prices slid by 0.8 percent in August following a 0.2 percent increase in the previous month. Export prices had been expected to tick up by 0.1 percent.

Biotechnology stocks have shown a strong move to the upside, driving the NYSE Arca Biotechnology Index up by 1.6 percent. Acadia Pharmaceuticals (ACAD) is posting a standout gain.

An increase by the price of gold is also contributing to notable strength among gold stocks, while many of the major sectors are showing more modest moves to the upside.

In overseas trading, stock markets across the Asia-Pacific region moved mostly lower during trading on Wednesday. Japan's Nikkei 225 Index slid by 0.7 percent, while Hong Kong's Hang Seng Index edged down by 0.1 percent.

Meanwhile, the major European markets have moved to the upside on the day. While the French CAC 40 Index has inched up by 0.1 percent, the German DAX Index and the U.K.'s FTSE 100 Index are up by 0.4 percent and 0.5 percent, respectively.

In the bond market, treasuries are regaining ground following the notable decline seen on Tuesday. As a result, the yield on the benchmark ten-year note, which moves opposite of its price, is down by 4.2 basis points at 1.692 percent.