Nasdaq Remains Sharply Lower But Dow Posting Modest Gain

After coming under pressure early in the session, stocks have regained some ground over the course of the trading day on Tuesday but remain mostly lower. The tech-heavy Nasdaq continues to post a particularly steep loss.

Currently, the Nasdaq is down 231.56 points or 1.5 percent at 14,779.79, while the S&P 500 is down 23.66 points or 0.5 percent at 4,746.17.

The narrower Dow, on the other hand, has recovered from initial weakness and climbed into positive territory. The blue chip index is currently up 51.29 points or 0.1 percent at 37,740.83.

The weakness in the broader markets comes as some traders continue to cash in on recent strength, particularly among technology stocks.

Last year, the Nasdaq skyrocketed by 43.4 percent in 2023, while the S&P 500 soared by 24.2 percent and the Dow surged by 13.7 percent.

A steep drop by shares of Apple (AAPL) is also weighing on the tech sector, with the iPhone maker tumbling by 3.8 percent to its lowest intraday level in well over a month.

The slump by Apple comes after Barclays downgraded its rating on the company’s stock to Underweight from Equal Weight.

Meanwhile, some traders remain away from their desks following the New Year’s Day holiday, looking ahead to the release of some key U.S. economic data in the coming days.

The Labor Department’s monthly jobs report is likely to be in focus, while reports on manufacturing and service sector activity may also attract attention along with the minutes of the latest Federal Reserve meeting.

Sector News

Semiconductor stocks continue to see substantial weakness, resulting in a 3.1 percent nosedive by the Philadelphia Semiconductor Index. The index continues to give back ground after reaching a record closing high last Wednesday.

Significant weakness also remains visible among software stocks, as reflected by the 2.1 percent slump by the Dow Jones U.S. Software Index.

Airline stocks are also seeing considerable weakness on the day, with the NYSE Arca Airline Index falling by 1.3…