4.05pm: Dow gains more than 300 points, erasing Monday’s decline
US stocks finished the trading session sharply higher, as investors stepped in and bought the recent dip in tech names.
At the close, the Dow rose 313 points to 34,315, while the S&P 500 added 45 points at 4,346 and the tech-heavy Nasdaq climbed 178 points, or 1.3%, to 14,434.
Big Tech led the comeback, with Apple Inc (NASDAQ:AAPL), Microsoft Corporation (NASDAQ:MSFT), and Alphabet Inc (NASDAQ:GOOG) each rising about 2%.
12:05pm: US equities up midday after tech rout
US stocks rebounded midday as tech stocks staged a comeback after a major rout a day before.
Mega-cap technology names were solidly in the green on Tuesday. Netflix rose 3.5%, Amazon gained 1.6% and Apple and Alphabet advanced more than 1% each. Facebook shares rose 2% following a 5% slide on Monday due to a whistleblower’s claims and a site outage.
As of noon, the Dow Jones Industrial Average increased 428 points, or 1.26%, to 34,426. The S&P 500 rose 58 points, or 1.35%, to 4,358.
The tech-heavy Nasdaq jumped 203 points, or 1.42%, to stand at 14,458.
Joshua Mahony, senior market analyst at online trading group IG, said investors are taking advantage of the ongoing weakness in tech stocks, which have been hurt by rising yields.
“US markets are staging a welcome fightback, with fears over a potential collapse in risk assets easing for the time being,” he said. “Tech has been at the forefront of today’s US rebound, with investors spotting value in the wake of a rare breach below the 100-day moving average in the Nasdaq. Shutdowns across a host of social media platforms yesterday brought fears for investors, yet such temporary measures also represent opportunities for longer-term thinkers."
He added: “Nonetheless, with yields on the rise of late, there is a risk that we do continue to see underperformance for Tech as investors worry about valuations.”
The biggest gainer on the day so far is DRDGOLD Limited, up 59,000% to $0.83 a share on the OTC.
11.05am: Proactive North America headlines:
Adcore says subsidiary to launch social commerce feature amid record growth
Whitehorse Gold intersects “bonanza-grade” gold and silver at its Skukum project in the Yukon
Victory Square Technologies says VS Digital Health has launched affiliated network in the US
LQwD FinTech says it has established routing nodes and has deployed Bitcoin into payment channels on the Lightning Network
One World Lithium says drilling of diamond drill hole DDH-4 has commenced at its Salar Del Diablo Lithium Brine Project in Mexic
Vox Royalty (TSX-V:VOX) says Zijin Mining has its sights set on a March completion date for the Binduli North expansion at the Janet Ivy mine in Western Australia
Levitee Labs (CSE:LVT) reports revenue growth, supported by ACT acquisition and organic growth
Vicinity Motor closes C$10.3M non-brokered financing of unsecured debenture units
Canaccord Genuity (TSX:CF, LSE:CF) reiterates 'Speculative Buy' rating on The Parent Company (OTCQX:GRAMF, NEO:GRAMU) following acquisition of Coastal Holding
Boosh attracts top talent as it expands distribution to new stores and prepares for exports
BioHarvest Sciences banks strong 3Q on increasing sales of its flagship VINIA product in Israel and the US
Nextleaf Solutions ships $750,000 worth of Glacial Gold products to BCLD in September
Tetra Bio-Pharma (TSX:TBP, OTCQB:TBPMF) says its first cannabinoid-derived medicine REDUVO is a ‘major milestone’ as it gears up to launch it
DeepSpatial partners with international development consulting group to provide its Geospatial AI solutions
Enveric Biosciences (NASDAQ:ENVB) uses AI platform to identify potential molecules for further drug discovery
Thesis Gold releases ‘outstanding’ assays from ongoing drill at the Ranch gold and copper project
Phunware announces Ten Million PhunToken Sweepstakes in conjunction with a new release of PhunWallet on Apple iOS and Google Android
Talon Metals intersects new high-grade nickel and copper mineralization at its Tamarack project in Minnesota
Predictmedix secures partnership deal to deploy its Safe Entry Stations at Entertainment Bay India events
IEC Electronics (NASDAQ:IEC) and Creation Technologies complete tender offer
GR Silver Mining (TSX-V:GRSL) completes extensive IP and ground magnetic geophysical survey connecting Marcial and San Juan areas
Australis subsidiary enters deal to develop fruit and veg facility in Kuwait
First Cobalt (TSX-V:FCC, OTCQX:FTSSF) awards Canadian refinery contract to Metso Outotec
Mydecine to supply lead drug candidate MYCO-001 for multi-site NIDA grant-funded smoking cessation study
Ximen Mining receives drill permit for Amelia gold property in British Columbia
Plurilock Security receives US$208,000 purchase order from US Navy
The Valens Company (TSX:VLNS, OTCQX:VLNCF) enters into six manufacturing partnerships
Mandalay Resources unveils encouraging drill results from Shepherd Zone at its Australia mine; updates on Costerfield Deeps drilling
PowerTap launches strategic review to unlock shareholder value
Valeo Pharma reaches milestone as it completes negotiations with pan-Canadian Pharmaceutical Alliance for Enerzair and Atectura
Tesla to pay US$130mln damages to Black former worker after racism lawsuit
Thor Explorations achieves milestone with commercial production at its Segilola gold mine in Nigeria
9.45am: US stocks start higher
US stocks started on the front foot on Tuesday following Monday's tech sell-off.
The Dow Jones Industrial Average gained over 144 points at 34,147, while the S&P 500 added around 17 points at 4,317. The technology-laden Nasdaq index added around 70 points to stand at 14,324.
Fawad Razaqzada, market analyst with ThinkMarkets, pondered, however, whether the stock rally could be sustained "in the face of rising concerns over stagflation".
"Crude prices have broken out again, a day after the OPEC+ agreed to raise oil output by 400K barrels per day instead of 800K bpd, with a pause in December," he said in a note.
"The impact of the OPEC’s decision has disappointed those calling for a bigger hike, and oil prices have risen as a result. This is only adding to inflationary pressures, especially for some emerging market economies who are also large oil importers like India."
Bond yields also continue to rise and are overvalued, while technology shares are undermined, as investors expect to see tighter monetary conditions from the Fed and other central banks in the months ahead, suggested the analyst.
6.35am: US stocks seen opening higher
US stocks are expected to open higher, recovering from a tech-led sell-off on Monday which saw sharp declines in stocks including Facebook Inc (NASDAQ:FB), Alphabet Inc (NASDAQ:GOOG) and Apple Inc (NASDAQ:AAPL).
Futures for the Dow Jones Industrial Average futures added 0.34% in Tuesday pre-market trading, while the broader S&P 500 index gained 0.37% and those for the tech-heavy Nasdaq-100 rose 0.44%.
Facebook fell 4.9% on Monday, recording its worse decline in almost a year, following a global outage for users of its WhatsApp and Instagram social media apps. The social media giant is also under pressure following a series of critical articles in the Wall Street Journal, which come as the big tech companies face broader regulatory scrutiny.
While a rise in the oil price to a seven-year high after the Opec+ group kept production unchanged boosted shares of energy companies, it fuelled concerns of stagflation, contributing to Monday’s losses.
“European markets have opened on a positive note despite the losses witnessed in Asia with US futures inching higher, suggesting Wall Street could claw back losses this afternoon,” commented Lukman Otunuga, senior research analyst at FXTM.
“Nevertheless, growing worries about inflation are likely to foster a sense of unease and caution across financial markets. Given how consumer prices are already at multi-year highs, persistent signs of rising inflationary pressures may force central banks to tighten policy sooner than expected.”