Stocks are turning in a mixed performance in morning trading on Monday, as the Dow and the S&P 500 are adding to last week’s strong gains but the tech-heavy Nasdaq is extending the sharp pullback seen last Friday.
Currently, the major averages remain on opposite sides of the unchanged line. While the Nasdaq is down 85.42 points or 1.2 percent at 7,271.57, the Dow is up 121.12 points or 0.5 percent at 25,391.95 and the S&P 500 is up 4.16 points or 0.2 percent at 2,727.22.
A continued decline by Apple (AAPL) is weighing on the Nasdaq, with the tech giant tumbling by 4 percent to a new three-month intraday low.
Apple is extending the sell-off seen in the previous session after a report from Japan’s Nikkei newspaper said demand for the company’s iPhone XR appears to be disappointing.
Overall trading is somewhat subdued, however, with traders reluctant to make significant moves ahead of the highly anticipated midterm elections on Tuesday, which will decide control of both the House and Senate.
Democrats are seen as having a much better chance to claim a majority in the House than in the Senate, but controlling the lower chamber would still allow Democrats to hinder President Donald Trump’s agenda.
The Federal Reserve’s looming monetary policy announcement is also keeping some traders on the sidelines, with the Fed due to announce is latest decision on Thursday.
While the Fed is widely expected to lead interest rates unchanged, traders will keep a close eye on the accompanying statement for clues about an expected rate hike in December.
Meanwhile, traders have largely shrugged off a report from the Institute for Supply Management showing a modest slowdown in the pace of growth in the service sector in the month of October.
The ISM said its non-manufacturing index