U.S. Stocks Showing A Lack Of Direction

(RTTNews) - Stocks have shown a lack of direction over the course of the trading session on Monday, with the major averages bouncing back and forth across the unchanged line following the modest pullback seen during last Friday's trading.

Currently, the major averages are narrowly mixed. While the Nasdaq is up 7.02 points or less than a tenth of a percent at 26,736.18, the S&P 500 is down 14.25 points or 0.2 percent at 7,771.51 and the Dow is down 220.19 points or 0.4 percent at 53,512.22.

The choppy trading on Wall Street comes as traders express some uncertainty about the near-term outlook for the markets.

While recent economic data has eased concerns about the Federal Reserve raising interest rates next month, crude oil prices remain at elevated levels amid the ongoing U.S.-Iran conflict.

U.S. crude oil futures are little changed on the day even after President Donald Trump threatened to bomb Oman during an interview with Fox News.

Trump's threat comes as Iran and Oman appear to be moving closer to an understanding over the management of the Strait of Hormuz.

In U.S. economic news, the Federal Reserve Bank of New York released a report showing New York manufacturing activity grew strongly in the month of August.

The New York Fed said its general business conditions index climbed to 20.6 in August from 15.6 in July, with a positive reading indicating growth. Economists had expected the index to fall to 11.0.

With the unexpected increase, the New York Fed's general business conditions index reached its highest level since hitting 34.4 in December 2021.

The National Association of Home Builders released a separate report unexpectedly showing a modest improvement in U.S. homebuilder confidence in the month of August.

The report said the NAHB/Wells Fargo Housing Market Index ticked up to 35 in August from 34 in July. Economists had expected the index to edge down to 33.

Sector News

Software stocks have shown a substantial move to the downside on the day, dragging the Dow Jones U.S. Software Index down by 2.2 percent.

Notable weakness is also visible among airline stocks, as reflected by the 1.2 percent loss being posted by the NYSE Arca Airline Index.

On the other hand, semiconductor stocks are seeing significant strength, driving the Philadelphia Semiconductor Index up by 2.4 percent to its highest intraday level in a month.

Shares of Intel (INTC) have shot up by 2.3 percent after a SEC filing CEO Lip-Bu Tan purchased more than 105,000 shares of the chipmaker last week at $95 apiece.

Gold stocks are also seeing considerable strength amid an increase by the price of the precious metal, with the NYSE Arca Gold Bugs Index jumping by 2 percent.

Other Markets

In overseas trading, stock markets across the Asia-Pacific region moved mostly higher during trading on Monday. Japan's Nikkei 225 Index climbed by 0.7 percent, while China's Shanghai Composite Index jumped by 1.4 percent.

Meanwhile, the major European markets have moved to the downside on the day. While the French CAC 40 Index is down by 0.5 percent, the U.K.'s FTSE 100 Index and the German DAX Index are both down by 0.1 percent.

In the bond market, treasuries have bounced back near the unchanged line after seeing early weakness. Subsequently, the yield on the benchmark ten-year note, which moves opposite of its price, is down by less than a basis point at 4.694 percent.