4.05pm: S&P 500 down for the fifth straight day
US stocks finished the trading session mixed after Goldman Sachs (NYSE:GS) projected the Federal Reserve will raise interest rates four times in 2022.
At the close, the Dow slipped 163 points to 36,068, while the S&P 500 eased 7 points at 4,670 and the tech-heavy Nasdaq rose 7 points to 14,943.
Notable movers included shares of Zynga, which soared more than 40% after Take-Two Interactive agreed to acquire the mobile games maker for $9.86 per Zynga share in cash and stock.
12:00pm: Heavy losses grip Wall Street
US stocks continued to trade in the red at midday on Monday, with heavy losses gripping the market following Friday's strong US jobs growth number and with the latest earnings season just around the corner.
At noon, the Dow Jones Industrial Average was 486 points, or 1.3% lower at 34,745, while the broader S&P 500 index dropped 1.6% and the tech-laden Nasdaq Composite lost 1.9%.
Chris Beauchamp, chief market analyst at IG, a global leader in online trading commented: “The new week has begun with markets firmly on the back foot, as investors picked up where they left off last week, selling stocks across the board as they contemplate the prospect of rate hikes in the US in coming months. On Wall Street losses are concentrated in tech, retail, and other consumer discretionary stocks.”
The analyst also noted that the shockwaves from the Federal Reserve minutes last week indicating the path for US interest rate hikes as early as March have not yet completely dissipated.
He said that "with policymakers continuing to reinforce the more hawkish outlook investors seem, for the moment, to have entirely lost their appetite for stocks.”
“With US CPI and earnings season on the calendar this week we have the potential for more volatility as the pace of price increases and the initial impact on the US economy becomes clearer,” Beauchamp added.
11.05am: Proactive North America headlines:
Genprex says it plans to ramp up opening of its Acclaim-1 clinical trial sites
Recruiter.com Group says Recruiter Index for December 2021 reveals remote roles increased by 29%
Hawkmoon Resources says it is well-funded to drill 5,000 metres this year at its Wilson property in Quebec's Abitibi Greenstone Belt
Tiziana Life Sciences given nod for second patient to undergo multiple sclerosis treatment
Ximen Mining hits 'significant' gold values with two holes at its Wild Horse property in British Columbia
Starton Therapeutics receives first clinical regulatory authorization for its STAR-LLD program
Trust Stamp (OTCQX:IDAI, EURONEXT:AIID) highlights transformational growth as it reviews 2021
Safe-T Group (NASDAQ:SFET) says its newest consumer privacy solution surpasses 10,000 subscriber milestone
CytoDyn Inc published paper shows leronlimab activity against 4-class drug resistant HIV-1
District Metals reveals sample results from recently-acquired Svärdsjö property that showcase high grades of polymetallic mineralization
DGTL closes second and final tranche of its previously announced private placement offering of subscription receipts
Beyond Medical Technologies offers medical grade face masks to push through Omicron wave
COPL shares surge on ‘significant and impressive’ new discovery
Milestone Scientific projects 85% rise in 2021 revenue to more than $10M as divisions gain traction
Nova Royalty bolsters portfolio with US$5.5M royalty deal on Hudbay Minerals' Copper World and Rosemont projects
Take-Two acquires Zynga, establishing themselves as a leader in the gaming industry
Canada Silver Cobalt reports high-grade silver and cobalt intersections at Castle East in Ontario
Mydecine caps a new milestone in its AI-powered drug discovery program that will allow it to screen billions of compounds
Mountain Boy discovers new high-grade target area on BA project in BC's Golden Triangle
Ketamine One (NEO:MEDI.AQN) says its subsidiary KGK Science becomes first founding sponsor of Psychedelic Science 2023 event
Xphyto Therapeutics makes key appointments as it progresses its biosensor and diagnostic products including for the detection of COVID-19
FansUnite Entertainment says its American Affiliate division has approval for online sports betting in New York state
Canntab Therapeutics provides an update on its recent product deliveries for Ontario and Australia
Argentina Lithium & Energy expands footprint at Pocitos project to over 26,000 hectares with three new option deals
Royal Wins appoints Luis Goldner, a leading gaming technology executive, to the company's high-profile Advisory Board
PowerTap reports accelerated commercial development of at-home green hydrogen solution
Xigem Technologies (CSE:XIGM, OTCQB:XIGMF) inks definitive agreement in Cylix Data Group acquisition
O3 Mining unveils latest infill drill results from Marban project, which augurs well for updated resource
Wishpond Technologies appoints David Pais as the company's chief financial officer, effective immediately
Thor Explorations says it is back on track with production following supply chain issues
Harvest Minerals sees substantially higher fertiliser sales this year after strong growth in 2021
9.50am: US shares start in red
US indices started in the red on Monday, with the S&P 500 dropping for the firth day in a row, as traders poise for a data and earnings-rich week.
In New York, the Dow Jones Industrial Average tanked 209 points at 36,022, while the broader S&P 500 lost 49 points at 4,627.
The tech-laden Nasdaq shed over 270 points to stand at 14,665.
It comes as investor sentiment continues to be rattled early in 2022 on the prospect of rising interest rates against a backdrop of faltering growth and increasing inflation.
Banking and investment titan Goldman Sachs (NYSE:GS) projected at the weekend that the US Central bank would hike rates four times in 2022.
On inflation this week, consumer price data (CPI) is set for release on Wednesday and is expected to show a year-over-year increase of 7.1%, while the producer price index, which measures wholesale prices, is earmarked to be reported on Thursday.
Jerome Powell, Fed chair is also scheduled to testify Tuesday at his nomination hearing before a Senate panel.
Friday will see the fourth-quarter release of earnings from megabanks JP Morgan Chase, Citigroup and Wells Fargo.
"Analysts expect Bank of America (NYSE:BAC) (which reports on Tuesday 18th), Citigroup, JP Morgan Chase and Wells Fargo to report an aggregate net profit of $117 billion, almost double 2020’s $60 billion outcome and higher than 2019’s previous peak of $100 billion," noted AJ Bell Investment director Russ Mould in a note.
6.30am: US stocks seen opening mixed
US stocks are expected to open mixed following a choppy start to the year, which saw the Nasdaq decline by around 4.5% in the first week of trading, whilst the S&P 500 was down around 1.9%.
Futures for the Dow Jones Industrial Average rose 0.03% in Monday pre-market trading, while the broader S&P 500 index shed 0.47% and those for the tech-heavy Nasdaq 100 declined 1.37%.
Stocks closed lower on Friday after the latest nonfarm payrolls report further sparked weakness in equities, with payrolls rising by only 199,000 in December, well below the expected expansion of 400,000.
However, the unemployment rate fell to 3.9% and average hourly earnings rose by 0.6%, supporting a tightening in monetary policy by the US Federal Reserve.
The Dow finished marginally lower at 36,232 while the S&P fell 0.41% to 4,677 and the Nasdaq slipped nearly 1% to 14,936.
“The initial exuberance of the New Year was soon replaced by a more wary outlook, as the impact of earlier than expected rate hikes were being priced in,” commented Richard Hunter, Head of Markets at interactive investor.
"The rotation away from growth stocks also remains in evidence, with the technology-laden Nasdaq suffering another difficult day and standing down by 4.5% after the first week of new year trading. The other indices also dipped into negative territory for the week, with the Dow Jones losing 0.3% and the S&P500 1.9%.
"Further clues will come later this week as the latest inflation reading is due, as well as a retail sales figure which could indicate that consumer spending and growth is being crimped. The likelihood of deflated sentiment arising from a burst of new Coronavirus cases alongside a more inflationary environment would further inform the central bank’s current thinking."