4:05pm: Stocks bounce back to close on a high note
The US indicies recovered from a losing streak to start the year as stocks rebounded from tech losses.
The Nasdaq led the gains, rising 1.3% to close at 15,818 points. The S&P 500 followed with a 0.9% increase at 4,713 points, while the Dow also posted a healthy gain of 0.5% to close at 36,252 points.
12:05pm: Wall Street recovering
US markets saw some recovery around midday on Tuesday with major indices moving into the green as investors eyed Congressional testimony from Federal Reserve Chair Jerome Powell amid rate hike expectations.
At noon, the Dow Jones Industrial Average was up 14 points, or 0.1% at 36,083, while the broader S&P 500 index and the tech-heavy Nasdaq Composite gained 0.5% and 1.3%, respectively.
Chris Beauchamp, chief market analyst at online trading platform IG noted: "Since last Wednesday’s Fed minutes US policymakers are appearing daily to stress their new hawkish outlook. Powell of course has been the most important, hitting the headlines with hints of a full year of rate rises, but others like Bostic have been banging the rate hike drum as well."
11.15am: Proactive North America headlines
Tesla is so far ahead of EV competition says Morgan Stanley (NYSE:MS)
Talon Metals shares fly after landmark agreement with Tesla to supply nickel concentrate from its flagship Tamarack project in Minnesota
Trillion Energy International says ‘trifecta of circumstances’ driving natural prices sharply higher
ElectraMeccanica (NASDAQ:SOLO) Vehicles boss eyeing ramp-up of production and sales this year as he highlights 'transformational' 2021
Great Atlantic Resources shares exploration progress at its flagship Golden Promise property in Newfoundland gold belt
Newrange Gold discovers high-grade gold samples at its Pamlico project in Nevada
Nextleaf says Glacial Gold CBD and THC products now available nationally in Canada through its medical cannabis distribution partner Mendo
TMX Group (TSX:X) announces its financing activity on Toronto Stock Exchange and TSX Venture Exchange for December 2021
SPYR (OTCQB:SPYR) Technologies announces expansion of marketing campaign for its Applied Magix's MagixDrive
Canada Silver Cobalt Works announces positive leach test results achieving 99% extraction of rubidium using Re-2Ox process
ESE Entertainment says production company Frenzy will produce international League of Legends esports competition Ultraliga
Trees Corporation (NEO:TREE) says its common shares start trading on the Neo Exchange under the symbol "TREE"
Cloud DX (TSX-V:CDX, OTCQB:CDXFF) wins three new contracts with US primary care clinics in Illinois
TMX Group (TSX:X) announces its financing activity on Toronto Stock Exchange and TSX Venture Exchange for December 2021
Burcon announces CEO transition after reaching production milestone
First Mining Gold outlines key developments aims at Springpole this year as it bids to reduce project's costs and improve green credentials
Plurilock says Aurora Systems receives US$308,000 purchase order from US Department of Defense
Safe-T Group (NASDAQ:SFET) sees momentum in Asia-Pacific with 75-plus new clients including ecommerce and NFT organizations
Neo Lithium says environmental impact assessment for its 3Q project in Argentina receives approval
American Resources says its Rare Earth division wins investment and strikes strategic partnership with Heritage Group
Marble Financial says Marble Connect API goes live with Nuborrow
9.50am: US shares open in red
US indices started in the red on Tuesday, with the S&P 500 dropping for the sixth day in a row as traders await key inflation data that's likely to drive interest rate hikes.
In New York, the Dow Jones Industrial Average shed 258 points, or 0.7%, to 35,810, while the broader S&P 500 lost 0.6%, and the tech-laden Nasdaq Composite shed 0.4%.
US consumer price index (CPI) data, set for release on Wednesday, is expected to show a year-over-year increase of 7.1% in December, while the producer price index, which measures wholesale prices, is scheduled to be reported on Thursday.
“The January blues are alive and well and with markets now eyeing up the possibility of four rate hikes this year, we may be approaching peak fear just in time for earnings season,” OANDA senior markets analyst Craig Erlam said.
“We've quickly pivoted from the transitory inflation narrative to aggressive tightening including a combination of accelerated tapering, multiple rate hikes, and impending balance sheet reduction. That's quite the shift.”
6.30am: US stocks seen opening up
US stocks are expected to open higher, supported by a recovery in tech stocks after a rough start to the year due to inflation concerns and looming interest rate hikes.
Futures for the Dow Jones Industrial Average rose 0.21% in Tuesday pre-market trading, while the broader S&P 500 index added 0.32% and those for the tech-heavy Nasdaq 100 gained 0.45%.
Stocks finished the trading session mixed on Monday after Goldman Sachs (NYSE:GS) projected the Federal Reserve will raise interest rates four times in 2022.
At the close, the Dow slipped 0.45% to 36,069, while the S&P 500 eased back 0.14% to 4,670 and the Nasdaq recovered to close 0.05% up at 14,943, ending days of losses.
“The tech-heavy Nasdaq index is down nearly 6% year to date, but yesterday’s session saw investors start to buy on the dip meaning that losses earlier in the day were eventually clawed back by the market close,” commented Russ Mould, investment director at AJ Bell.
“It might be too early to call the start of a proper recovery for tech as pre-market indicative prices show minimal gains in the Nasdaq on Tuesday. Investors are likely to be waiting for US inflation figures tomorrow before committing to any big trades on the market."
Mould noted that the consensus forecast is for inflation to have hit 7.1% year-on-year in December, from November's 6.8% rise, meaning all eyes will be on the Federal Reserve and how quickly it plans to take action to try and curb the high cost of living.