S&P 500 Posting Modest Loss Amid Tech Sector Weakness

(RTTNews) - After moving mostly higher over the two previous sessions, stocks are giving back some ground during trading on Thursday. The Nasdaq and S&P 500 have rebounded after an early slump but remain in negative territory.

Currently, the Nasdaq is down 229.34 points or 0.9 percent at 26,039.89, while the S&P 500 is down 15.32 points or 0.2 percent at 7,557.08.

The narrower Dow, on the other hand, has moved to the upside on the day and is currently up 142.44 points or 0.3 percent at 52,801.08.

The blue chip index is benefitting from a sharp increase by shares of UnitedHealth (UNH), with the health insurance giant spiking by 5.2 percent after reporting better than expected second quarter earnings and raising its full-year profit outlook.

Dow components Merck (MRK), Nike (NKE) and Amgen (AMGN) are also posting significant gains on the day.

Meanwhile, weakness among technology stocks is weighing on the broader markets, as reflected by the slump by the tech-heavy Nasdaq.

Computer hardware stocks are turning in some of the worst performances, with the NYSE Arca Computer Hardware Index plunging by 4 percent.

Substantial weakness is also visible among semiconductor stocks, as reflected by the 3.7 percent slump by the Philadelphia Semiconductor Index.

Shares of Taiwan Semiconductor (TSM) have climbed off their worst levels but remain down by 2.2 percent after the chipmaker reported better than expected second quarter results but forecast an increase in capital spending.

"While the case for boosting capacity is clear at a time when there is a large gap between supply and demand, shareholders will want TSMC to retain some discipline even as it looks to meet orders piling up," said AJ Bell head of markets Dan Coatsworth.

Outside of the tech sector, gold stocks have moved sharply lower along with the price of the precious metal, dragging the NYSE Arca Gold Bugs Index down by 4.4 percent.

Meanwhile, transportation stocks have shown a significant move to the upside on the day, resulting in a 3.1 percent surge by the Dow Jones Transportation Average.

Healthcare, pharmaceutical and housing stocks are also turning in strong performances, helping to limit the downside for the broader markets.

In overseas trading, stock markets across the Asia-Pacific region moved mostly lower during trading on Thursday. Japan's Nikkei 225 Index plunged by 2.8 percent, while China's Shanghai Composite Index tumbled by 1.9 percent.

Most European stocks have also moved to the downside on the day. The German DAX Index is down by 0.8 percent and the French CAC 40 Index is down by 0.5 percent, although the U.K.'s FTSE 100 Index has bucked the downtrend and inched up by 0.1 percent.

In the bond market, treasuries are giving back ground after moving notably higher over the two previous sessions. Subsequently, the yield on the benchmark ten-year note, which moves opposite of its price, is up by 4.1 basis points at 4.586 percent.