4:10pm: Positive finish
Today's gains extended the recent upward trend in the market, with the Dow continuing its impressive streak of positive sessions.
The Dow led the charge in today's market rally, climbing 317 points or 0.7% to close at 44,87313.
The S&P 500 followed suit, gaining 24 points or 0.4% to finish at 6,0613.
The Nasdaq Composite lagged slightly but still managed to add 38 points or 0.2%, ending the session at 19,692.
Investors appeared to be optimistic about potential interest rate cuts and were buoyed by strong corporate earnings reports.
2:45pm: Market movers
Alphabet stock traded down 7.6% on Wednesday afternoon as below-expected Cloud revenue growth overshadowed an earnings beat for Q4.
Disney stock fell 1.7% despite an earnings beat after it revealed it expects another decline in subscribers for its Disney+ streaming service this quarter.
Uber shares fell more than 8% after the rideshare app issued weak guidance for the current quarter.
Novo Nordisk’s US-listed stock gained 4.4% after the Danish drugmaker posted better-than-expected financial results for the fourth quarter driven by demand for its obesity drugs Wegovy and Ozempic.
BigBear.ai shares surged more than 50% after the firm unveiled a new AI contract with the US Department of Defense.
1:35pm: Trade deficit widens
The US trade deficit surged in December, making it 17% larger in 2024 than in 2023.
While the increase may be temporary, tariff policy and its potential impact on trade remain key concerns, analysts at Wells Fargo noted.
"While it is normal to have some discrepancy between the monthly and quarterly figures, this is unusually wide and suggests we may see some downward revisions to GDP growth in the second and third estimate or this December deficit may be revised smaller," analysts wrote.
12:19pm: Gold eyes $2,900
US stocks traded slightly higher in the early afternoon as investors weighed up disappointing earnings reports from Alphabet and AMD amid the escalating US-China trade war.
The Dow Jones added 0.3% at 44,674 points, the S&P 500 was up 0.1% at 6,046 points, while the Nasdaq was flat at 19,661 points.
There is an overall positive mood re-emerging in markets despite Alphabet’s poorer earnings, according to IG chief market analyst Chris Beauchamp.
“President Trump’s attention has moved on from tariffs and trade for the time being, though the mercurial leader could easily return to his favourite topic soon. Nonetheless, volatility is down once more, and calm prevails for the moment,” Beauchamp said.
Gold, meanwhile, marched 0.8% higher, closing in on $2,900 per ounce.
“The $2900 level is now in sight for gold, as the metal’s impressive rally goes on,” Beauchamp said.
“Safe haven buying, central bank purchases and continuing softness in the dollar have made life much more amenable for the commodity, and if tariffs rear their head again we should see the metal make fresh gains.”
11:00am: Stronger-than-expected private job growth
ADP reported stronger-than-expected private job growth in January, but Comerica's Bill Adams cautions that Friday's official jobs report may show a slower pace of hiring.
ADP reported that private U.S. employers added 183,000 jobs in January, surpassing the 150,000 forecast, with December's gain revised up to 176,000. Median pay growth for Job Changers slowed to 6.8%, while Job Stayers saw an increase to 4.7%.
"The report suggests that the drag on economic activity from the wildfires and January cold snap should be short lived," Adams commented.
"ADP’s first estimate of employment tends to be less sensitive to disruptions from weather than the government’s payroll count, which fluctuates more during bad weather or natural disasters like the California wildfires.
"The economy is kicking off 2025 in good shape. Businesses’ hiring intentions are firming, and the latest hiring data in hand shows them following through with action."
9.48am: Mixed start on Wall Street
Wall Street fared mixed fortunes as Tuesday’s trading kicked off, with the Dow Jones gaining but the S&P 500 and Nasdaq both falling.
Weighed down by the likes of Alphabet Inc and Advanced Micro Devices Inc on underwhelming results, the Nasdaq shed 0.5% after the opening bell.
The declines also dragged on the S&P 500, which fell by 0.2%, led by chemical firm FMC Corp as it slumped almost 36% on below-expected fourth-quarter revenue.
The Dow Jones added 0.1% in the meantime, as gains for the likes of Amgen Inc, Nvidia Corp and JPMorgan Chase & Co helped offset falls by Amazon.com Inc and Apple Inc.
Apple reportedly had become the latest subject to a potential investigation by China as trade relations with the US remained strained following last weekend’s confirmation of tariffs.
7.37am: Declines expected as China seeks fresh talks on US trade spat
Wall Street headed for declines ahead of Wednesday’s opening bell as the US-China trade spat continued to cast a shadow over sentiment.
Having been due to speak on Tuesday, a call between Donald Trump and Xi Jinping had been cancelled after China set retaliatory tariffs as US levies came into force.
China foreign ministry spokesperson Lin Jian subsequently flagged “strong dissatisfaction and resolute opposition” to the US tariffs and called for “fair and mutually respectful dialogue”.
US stocks had managed to rack up gains on Tuesday, though futures pointed to another tough start after declines on the back of tariff-sparked fears earlier in the week.
The Nasdaq was seen 0.8% lower ahead of Wednesday’s opening bell, with the S&P 500 and Dow Jones called 0.5% and 0.1% lower respectively.
Gold pushed record highs in the meantime, climbing as high as US$2,877 on Wednesday.
Among companies, eyes were on the likes of The Walt Disney Co and Ford Motor Co ahead of earnings.
Google owner Alphabet Inc, having unveiled weaker-than-expected fourth-quarter revenue and a big spending forecast that unsettled investors overnight, slumped 6.8% in pre-market trading.