Major Averages Close Firmly In Negative Territory

(RTTNews) - Stocks moved sharply lower over the course of the trading day on Wednesday, adding to the modest losses posted in the previous session. The continued pullback came as traders expressed renewed concerns about the outlook for the Federal Reserve's stimulus program.

After regaining some ground over the two previous sessions gold stocks showed a substantial move back to the downside on the day. The NYSE Arca Gold Bugs Index plunged by 3.8 percent but remains off its recent five-year lows.

The sharp pullback by gold stocks came even as the price of the precious metal showed only a modest decrease, slipping $3.90 to $1,257.20 an ounce.

Biotechnology stocks also came under considerable selling pressure, dragging the NYSE Arca Gold Bugs Index down by 2.8 percent. Nektar Therapeutics (NKTR) and Pharmacyclics (PCYC) turned in two of the biotech sector's worst performances.

Significant weakness was also visible among commercial real estate stocks, as reflected by the 2.5 percent drop by the Morgan Stanley REIT Index. With the loss, the index hit a three-month closing low.

Housing, steel, natural gas and electronic storage stocks also showed notable moves to the downside on the day, moving lower along with most of the other major sectors.

The major averages crept up off their worst levels going into the close but still ended the day firmly in the red. The Dow slid 129.60 points or 0.8 percent to 15,843.53, the Nasdaq tumbled 56.68 points or 1.4 percent to 4,003.81 and the S&P 500 slumped 20.40 points or 1.1 percent to 1,782.22.