4:05pm: S&P 500 sees worst day since October
US stocks ended the day sharply lower as traders took profits following a multi-week bull run.
At the close, the Dow fell 476 points to 37,082, while the S&P 500 eased 70 points at 4,698 and the tech-heavy Nasdaq slipped 225 points to 14,778.
"Markets were becoming overbought, and a pullback like this is natural given those conditions," Globalt Investments senior portfolio manager Keith Buchanan said.
Notable movers included shares of FedEx (NYSE:FDX) Corp, which slumped 12% after the package delivery giant’s 2Q financial results missed expectations and the company issued a disappointing outlook for the year.
12:00pm: Consumer confidence jumps in December
US stocks clawed back early losses to post modest gains as a jump in consumer confidence gave the market a further boost.
At midday, the Dow Jones Industrial Average was up 15.74 points at 37,573.66, the S&P 500 was up 1.85 points 4,770.22 and the Nasdaq Composite was up 32.86 points, 0.2%, at 15,036.08.
The Conference Board consumer confidence index reached a reading of 110.7 this month, up from a downwardly revised 101 in November, the organisation said on Wednesday.
Economists expected a level of 104.
Improved confidence stemmed from better perceptions of current business and labour market conditions, and less pessimism over personal finances, jobs, and business conditions over the next six months.
However, consumers were more concerned about their current personal finances as prices continue to rise, despite signs inflation is moderating.
Grace Zwemmer at Oxford Economics noted consumers grew more optimistic about both their present situation and their future expectations, a trend which would be consistent with the economy achieving a soft landing.
Nonetheless, she expects further weakening in the labor market will keep consumer confidence down over the next year.
9:43am: Stocks mixed as FedEx (NYSE:FDX) warning tempers enthusiasm
Stocks in New York opened lower as a warning from industry bellwether FedEx (NYSE:FDX) injected a note of caution to a market buoyed by recent gains.
Shortly after the opening bell, the Dow Jones Industrial Average was down 78.18 points, 0.2%, at 37,479.74, the S&P 500 was down 5.59 points, 0.1%, at 4,762.78 although the Nasdaq Composite rose 13.99 points, 0.1%, at 15,017.22.
Investors will be looking ahead to tomorrow's GDP data and Friday's personal consumption expenditure figures for further insight as the market continues to eye earlyu cuts to interest rates in 2024.
FedEx (NYSE:FDX) fell 12.2% as analysts lowered expectations following disappointing results - Bank of America cut its price target to $313 from $334.
General Mills (NYSE:GIS) was another early faller, down 2.1% after reporting revenue for its financial second quarter light of expectations as organic net sales fell 2%.
7:00am: FedEx (NYSE:FDX) warning dents the upbeat festive spirit
Stocks in New York are expected to open lower after a warning from FedEx dented the buoyant end-of-year mood.
In pre-market trading, futures for the Dow Jones Industrial Average were down 0.1%, while those for the S&P 500 were 0.2% lower and contracts for the Nasdaq 100 futures declined 0.3%.
FedEx slumped 15.4% in premarket trading Wednesday after the company posted a disappointing revenue outlook for the financial year.
Results for its second quarter also fell short of Wall Street’s expectations on the top and bottom lines.
AJ Bell’s Russ Mould said: “Another FedEx warning suggests bad news for the US and global economy could be in the post.”
“The business is often seen as a barometer of wider economic conditions because it has broad exposure across areas like transportation, logistics and e-commerce.”
Elsewhere, investors will be paying close attention to consumer confidence figures which are expected to have improved so far in December.
Economists expect the Conference Board’s consumer confidence index to rise to a reading of 104 from 102 in November.