4:05pm: Stocks take a breather following Tuesday rout
At the close, the US markets were all back in the green after yesterday's hot inflation data prompted a big selloff.
The Nasdaq had the most gains on the day at 1.3% to close at 15,859 points, the S&P 500 added 1% to reach the 5,000 point mark yet again and the Dow was up 0.4% to finish at 38,424.
12:05pm: Dip buyers swoop in
US equities at noon were recovering from yesterday’s selloff spurred by a hotter-than-expected inflation reading for January.
The Nasdaq added 0.4% at 15,718 points and the S&P 500 was up 0.3% at 4,966 points. The Dow Jones, meanwhile, was flat at 38,257 points.
IG chief market analyst Chris Beauchamp noted that the post-US CPI reading slump had been halted, for now.
“Those hoping for a second day of heavy losses for stocks have been disappointed. Dip buyers have come in following yesterday’s drop in the wake of US inflation data, mounting a holding action that is preventing any further downside for the time being,” Beauchamp said.
“Bullish hopes rest in the view that the Fed is unlikely to shift position after one reading. Investors are also looking back to the CPI reading a year ago, which also spooked markets but ultimately failed to stop the upward move in equities.”
9:58am: Nasdaq leads way as markets open higher
The Nasdaq led gains this morning as US markets opened higher following a tough session of trading on Tuesday.
Hotter-than-expected inflation had hit the markets, as hopes for rate cuts anytime soon looked to be dampened.
The Nasdaq Composite climbed 0.7% to 15,770 soon after Wednesday’s opening bell, with the S&P 500 also seeing strong gains of 0.5% to bring it closer back to the 5,000 mark at 4,980.
The Dow Jones ticked up 0.1% to 38,315, meanwhile.
Barrick Gold was among multiple firms reporting this morning, with the company slipping in early trading despite unveiling per share net income of $0.27, above expectations.
Another reporter, Kraft Heinz Co (NASDAQ:KHC, ETR:KHNZ), also fell, after reporting below-anticipated sales as price increases failed to mitigate declining volumes.
6:58am: US stocks seen higher after Tuesday’s losses
US stock markets are expected to open in the green on Wednesday after hotter-than-expected inflation data forced losses on Tuesday.
Futures trading has the NASDAQ opening 0.5% higher at 17,761, with the S&P 500 and Dow Jones expected up by 0.3% and 0.1% to 4,986 and 38,387 respectively.
A higher-than-expected inflation reading of 3.1% for December had hit trading on Wednesday, as hopes of base rate cuts anytime soon looked to be dampened.
“The focus is now turning to this week’s other data releases,” City Index analyst Fawad Razaqzadal said ahead of Wednesday’s open.
“Up next, we have retail sales, industrial production, jobless claims, and Manufacturing indices from Philadelphia and New York, all scheduled for release on Thursday.”
Upcoming data will have to show figures weakening significantly for short-term outlook on the likes of base rate cuts and US dollar exchange rates to improve, he added.
Back to Wednesday, Barrick Gold Corp, CME Group Inc (NASDAQ:CME), The Kraft Heinz Co (NASDAQ:KHC, ETR:KHNZ), Cisco Systems Inc (NASDAQ:CSCO, ETR:CIS), Occidental Petroleum Corp (NYSE:OXY), Quantumscape Corp (NYSE:QS) and Twilio Inc (NYSE:TWLO) are all due to report.