U.S. Stocks Seeing Further Downside Following Early Pullback

Market Overview - Stocks have sharply declined, with the Dow reaching a record intraday high before falling into negative territory alongside the Nasdaq and S&P 500 [1][2] - The Nasdaq is down 453.90 points (1.9%) at 23,138.21, the S&P 500 is down 85.29 points (1.2%) at 6,891.15, and the Dow is down 397.70 points (0.8%) to 49,009.96 [2] Sector Performance - Software stocks are underperforming, leading to a 3.7% drop in the Dow Jones U.S. Software Index, marking its lowest intraday level in over nine months [3] - Despite the overall weakness, Palantir Technologies (PLTR) shares rose by 7.0% after reporting better-than-expected fourth-quarter results and providing positive guidance [3] - Semiconductor stocks are also weak, with the Philadelphia Semiconductor Index plunging by 3.1%. NXP Semiconductors (NXPI) shares fell by 9.5% despite exceeding analyst estimates in its fourth-quarter results [4] Market Rotation - The market is experiencing a rotation away from tech stocks, with retail giant Walmart (WMT) achieving a market capitalization exceeding $1 trillion for the first time, joining a group previously dominated by tech companies [4][5] - Gold stocks are performing well, with the NYSE Arca Gold Bugs Index surging by 2.5% due to a rebound in gold prices [6] - Other sectors such as steel, housing, and energy are also showing notable strength, helping to mitigate broader market declines [6] International Markets - In overseas trading, stock markets in the Asia-Pacific region saw significant gains, with Japan's Nikkei 225 Index rising by 3.9% and China's Shanghai Composite Index increasing by 1.3% [6] - Conversely, major European markets experienced declines, with the U.K.'s FTSE 100 Index down by 0.3%, the German DAX Index down by 0.1%, and the French CAC 40 Index closing just below unchanged [7] Bond Market - The bond market is experiencing modest weakness, with the yield on the benchmark ten-year note rising by 1.2 basis points to 4.287% [8]