The Nasdaq gained in mixed trading following a volatile day where all three indexes wavered in and out of the red.

The Dow Jones Industrial Average fell 72 points, or 0.2%. The S&P 500 declined less than 0.1%, and the Nasdaq Composite rose 0.3%.

Investors started the day with news that the Biden administration is contemplating new restrictions on selling chips used in AI to Chinese customers.

“New restrictions could potentially impact a broad range of technology companies, leaving the market without what was until now a strong positive catalyst,” wrote Ralph Ratterman, asset manager at DHF Capital S.A.

Stocks also dipped after Federal Reserve Chairman Jerome Powell made comments at a panel in Europe, stating consecutive rate hikes aren't off the table as the central bank works to get core inflation under control.

According to the CME FedWatch Tool, 81.8% of traders are now anticipating a 25 basis point rate hike at the Fed’s July meeting.

Source: Barron's