The Dow fell 148.82 points (0.3%) to 44,424.25, the Nasdaq slid 99.38 points (0.5%) to 19,954.30 and the S&P 500 dipped 17.37 points (0.3%) to 6,101.24.
CME Group's FedWatch Tool is currently indicating a 71.1% chance rates will be lower by at least a quarter point following the Fed's June meeting. University of Michigan released a revised data showed consumer sentiment unexpectedly deteriorated by more than previously estimated in the month of January.
The University of Michigan said its consumer sentiment index for January was downwardly revised to 71.1 from the preliminary reading of 73.2. The consumer sentiment index is down from the final December reading of 74, marking the first decrease in six months. National Association of Realtors released a report revealing that existing home sales jumped by much more than expected in the month of December, reaching their highest level since last February.
Semiconductor stocks significantly moved downwards, dragging the Philadelphia Semiconductor Index down by 1.9%. Texas Instruments (TXN) led the semiconductor sector lower, plunging by 7.5% after reporting better than expected fourth quarter results but providing disappointing earnings guidance for the current quarter.
Oil and networking stocks were notably weak while pharmaceutical stocks strongly moved upwards , driving the NYSE Arca Pharmaceutical Index up by 1.4%. U.S.-listed shares of Danish drug maker Novo Nordisk (NVO) surged by 8.5% post the company's announcement of positive trial results for its obesity drug.
Asia Pacific stocks moved mostly higher. Hong Kong's Hang Seng Index surged by 1.9% and South Korea's Kospi advanced by 0.9%, although Japan's Nikkei 225 Index bucked the uptrend and edged down by 0.1%. The major European markets moved downwards. While the U.K.'s FTSE 100 Index slid by 0.7%, the French CAC 40 Index and the German DAX Index both edged down by 0.1%.
In the bond market, treasuries gave back ground after an early advance but remained modestly higher. Subsequently, the yield on the benchmark ten-year note, which moves opposite of its price, edged down by 1.2 basis points to 4.62%.
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