U.S. Stocks Climb Off Worst Levels But Remain Mostly Lower

After coming under pressure in early trading on Friday, stocks have regained some ground over the course of the session but remain mostly lower.

The major averages have moved roughly sideways in recent trading, stuck in negative territory. The Dow is down 132.85 points or 0.4 percent at 33,813.86, the Nasdaq is down 70.52 points or 0.5 percent at 13,560.91 and the S&P 500 is down 17.89 points or 0.4 percent at 4,364.00.

Overseas weakness carried over onto Wall Street in early trading amid ongoing concerns about the outlook for interest rates and the global economy.

Rate hikes in England and other countries along with the Federal Reserve’s forecast for additional rate increases have reignited worries tighter monetary policy will tip the global economy into recession.

Selling pressure has waned over the course of the session, however, with a lack of major U.S. economic data keeping some traders on the sidelines.

The economic calendar picks back up next week with the release of reports on durable goods orders, consumer confidence, new home sales and pending home sales.

The Commerce Department is also due to release its report on personal income and spending in the month of May, which includes a reading on inflation said to be preferred by the Fed.

The consumer price inflation data could significantly impact opinions regarding whether the Fed will follow through on its forecast rate hikes.

Sector News

Networking stocks are seeing considerable weakness in afternoon trading, resulting in a 1.7 percent drop by the NYSE Arca Networking Index.

Significant weakness also remains visible among semiconductor stocks, as reflected by the 1.4 percent loss being posted by the Philadelphia Semiconductor Index.

Oil service stocks have climbed off their worst levels of the day but also remain firmly negative, dragging the Philadelphia Oil Service Index down by 1.3 percent.

Computer hardware and utilities stocks are also seeing notable weakness, while most of the other major sectors are showing more modest moves to the downside.

Other Markets

In overseas trading, stock markets across the Asia-Pacific region moved mostly lower during trading on Friday. Japan’s Nikkei 225 Index tumbled by 1.5 percent, while Hong Kong’s Hang Seng Index plunged by 1.7 percent.

The major European markets also moved to the downside on the day. While the German DAX Index slumped by 1.0 percent, the French CAC 40 Index slid by 0.6 percent and the U.K.’s FTSE 100 Index fell by 0.5 percent.

In the bond market, treasuries have rebounded after coming under pressure in the previous session. As a result, the yield on the benchmark ten-year note, which moves opposite of its price, is down by 5.5 basis points at 3.744 percent.

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