(RTTNews) – Following the decline seen at the start of the session, stocks saw a further decline during the trading day on Wednesday. With the day’s decline, the major averages extend the pullback seen in the previous session.
Currently, the major averages linger near their worst levels for the day. The Dow is down 324.05 points or 1% at 32,666.07, the Nasdaq is down 135.32 points or 1.1% at 11,946.07 and the S&P 500 is down 46.58 points or 1.1% at 4,085.57.
Wall Street’s weakness may partly reflect a reaction to comments by JPMorgan Chase (JPM) CEO Jamie Dimon, who urged investors to prepare for an economic hurricane.
“You know, I said there were storm clouds but I’m going to change it…it’s a hurricane,” Dimon said at a financial conference in New York, according to CNBC. .
“You better get ready,” he added. “JPMorgan is preparing and we are going to be very conservative with our balance sheet.”
Negative sentiment may also have been generated in reaction to a Labor Department report showing job openings fell by 455,000 to 11.4 million in April.
Stocks were also under pressure amid a jump in Treasury yields, with the yield on the benchmark ten-year note climbing back above 2.9%.
The rise in yields came after the Institute for Supply Management released a report showing that US manufacturing activity unexpectedly expanded at a slightly faster pace in May.
The ISM said its manufacturing PMI rose from 55.4 in April to 56.1 in May, with a reading above 50 indicating growth in the sector. The rise surprised economists, who expected the index to dip to 54.5.
Airline stocks continued to experience substantial weakness on the day, dragging the NYSE Arca Airline Index down 4.6%.
Considerable weakness also remains visible among banking stocks, as evidenced by the 2.6% drop in the KBW banking index.
Semiconductor stocks also showed significant downward movement during the day, dragging the Philadelphia Semiconductor Index down 2.5%.
Healthcare, brokerage and biotech stocks are also seeing notable weakness, while gold and energy stocks are resisting the downtrend.
In overseas trading, stock markets in the Asia-Pacific region posted a mixed performance during Wednesday’s trading. Japan’s Nikkei 225 index rose 0.7%, while Hong Kong’s Hang Seng index fell 0.6%.
Meanwhile, major European markets all traded lower on the day. While Germany’s DAX index fell 0.3%, France’s CAC 40 index slid 0.8% and Britain’s FTSE 100 index fell 1%.
On the bond market, treasury bills extend the notable decline seen in the previous session. As a result, the yield on the benchmark 10-year note, which moves opposite to its price, is up 8.9 basis points to 2.933%.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.