US Markets Take a Step Back as Techs Tumble

The markets edged away from their 13-month highs on Wednesday as tumbling tech stocks kept Wall Street from rallying for a fourth-straight session. The day ends with a dash back to the breakeven line. At its lows of the session, the Dow Jones Industrial Average (DJIA) was down 77 points but it closed with a loss of only 11 points. The S&P 500 (SPX) was also flat while the Nasdaq Composite (COMP) and Russell 2000 (RUT) finished with minor losses.

And the losses were muted, especially compared to the 6.8% surge on the blue-chip index over the previous ten sessions. Like most of that rally, Wednesday’s session was accompanied by a weaker U.S. dollar, which fueled another record high for gold but wasn't enough to produce another gain for stocks.

Today's Markets
The Dow Jones Industrial Average fell 11.11 points, or 0.11%, to 10426.31, the S&P 500 sank 0.52 points, or 0.05%, to 1109.80 and the Nasdaq Composite lost 10.64 points, or 0.48%, to 2193.14.

The modest drop came a day after major stock indicators closed at 13-month highs and only after having risen over nine of the past 11 days. Analysts say the market has been due for a break after the fast ascent.

“I think the market still has a lot of legs. This rally is not going away fast,” NYSE trader Doreen Mogavero told Reuters. “I’m really still optimistic about everything, at least through the end of the year.”

"It's a bit of a consolidation trade," she said. "Traders are scared to go out too far out on a limb here and do anything too risky late in the year."

The Dow was led lower by its tech components, with Hewlett-Packard (HPQ) and Intel (INTC) sinking more than 1% a piece. On the other hand, financial giant Bank of America (BAC) and drug maker Merck (MRK) closed solidly higher.

Meanwhile, the dollar gave back most of Tuesday's gains, boosting commodities. Gold closed at another all-time high and in the green for the twelfth day of the last 13, rising $1.90 a troy ounce, or 0.17%, to $1140.70. Basic materials stocks like Hecla Mining (HL) extended their big month of gains.

Crude oil closed up after a new inventory report showed higher-than-expected drops in crude and gasoline stockpiles. Crude settled up 44 cents a barrel, or 0.56%, at $79.58.

Global Markets
European markets closed with a mixed picture. The U.K.'s FTSE 100 fell 0.07% to 5342.13, France's CAC 40 slid 0.02% to 3828.16 and Germany's DAX jumped 0.16% to 5787.61.

In Asia, Tokyo's Nikkei 225 slipped 0.55% to 9676.80, Hong Kong's Hang Seng fell 0.32% to 22840.33 and China's Shanghai Composite gained 0.62% to 3303.23.