4:15pm: Recovery rally over
The three major stock indexes reversed course and ended Wednesday’s trading session in negative territory.
The Nasdaq was down 1.1% at 16,195 points, the S&P 500 was down 0.8% at 5,199 points and the Dow Jones shed 0.6% at 38,763 points.
Weighing on the Nasdaq was a 5% drop in chipmaker Nvidia.
12:12pm: Recovery continues
Stocks continued to rally after Monday’s sell-off as investors digested another batch of earnings reports from the likes of Disney and Novo Nordisk (NYSE:NVO).
The Nasdaq added 0.9% at 16,509 points, the S&P 500 was up 0.8% at 5,283 points, and the Dow Jones was 0.6% higher at 39,211 points.
“The disorderly selloff of Monday’s session has been replaced with more gains for stocks and a continued decline in the volatility index, a sign that things continue to calm down,” IG chief market analyst Chris Beauchamp commented.
“The light macro and earnings calendar this week has proved to be an unexpected blessing, giving investors space to reassess their outlook on the next few months. However, it might not take much to tip them into risk off mode again, particularly if signs of a fresh unwind in the yen trade rear their head.”
9.36am: Wall Street green at open
US stocks have opened higher today, continuing on with the strong momentum as the markets look to recover as much of the losses suffered this week as possible.
The Dow Jones started trading nearly 0.5% higher, while the Nasdaq popped close to 2%, but still remains another 2% down from where it started this week.
The S&P 500 rose about 1.3% as well.
Disney shares slipped 2% despite its revenues and earnings rising more than forecast in the past quarter, helped by Inside Out 2 becoming the highest-grossing animated cinema release of all time.
Revenues from Disney World and Disney Land parks in the US decreased in what was the group’s fiscal third quarter, with overall sales from its Experiences division hit by “moderation of consumer demand towards the end of Q3 that exceeded our previous expectations”.
Disney also announced it would be raising prices across its streaming services over the coming months and one year on from the last hike.
Prices across Disney+, Hulu and ESPN are all set to increase in the US, which will come into play from October 17.
8.30am: Wall Street to open higher
US markets are set for another day in the green after all three of the main indexes lifted around 1% on Tuesday.
The Nasdaq is on track to begin trading nearly 230 points higher at 18,422, while the S&P 500 is positioned to rise 55 points to 5,323.
The Dow Jones is set to open more than 280 points higher at 39,423.
"The lingering question now is whether the concerns that pushed the market into a cascade of selling are alleviated," said LPL Financial chief global strategist Quincy Krosby.
"Pockets of volatility are expected to continue as August and September give way to a calmer seasonal period, however, it’s important to remember pockets of opportunity are always on the other side of the storm.”