4.05pm: Dow gains after sinking more than 1000 points
US stocks finished the trading session higher, bouncing back after the S&P 500 entered correction territory ahead of the Federal Reserve rate decision and some key earnings reports later this week.
At the close, the Dow rose 99 points to 34,365, while the S&P 500 added 12 points at 4,410 and the tech-heavy Nasdaq gained 86 points to 13,855.
Notable movers included shares of Kohl’s Corp, which soared more than 30% after the retailer confirmed it had received takeover proposals from at least two private equity firms.
12:05pm: S&P 500 drops into correction territory
US stocks continued to decline midday on Monday with the broader S&P 500 index stepping into correction territory. shouldering a 10% drop since the latest high.
Investors were fretting about further corporate earnings reports and the Federal Reserve monetary policy-setting meeting this week, while tensions between Russia and Ukraine also added to the concerns.
At noon, the Dow Jones Industrial Average had shed a significant 807 points, or 2.5%, at 33,441, while the S&P 500 and tech-laden Nasdaq Composite dropped by 3.0% and 3.8%, respectively.
“It has been a brutal start to the week for stocks, pushing the Dow below 34,000,” said Chris Beauchamp, chief market analyst at online trading platform IG. “There had been some hope that the new week might see a more optimistic view prevail, but the catalogue of earnings this week, along with a key Fed meeting, have combined to keep investors firmly in risk-off move.”
Besides, the analyst noted, “investors will have spent the weekend reading of troop build-ups around Ukraine and the growing tensions between Russia and the West, providing yet another reason to either sell stocks or sit on the sidelines.”
11.50am: Proactive North America headlines:
The Good Shroom (TSX-V:MUSH) Co CEO says quality of cannabis and mushroom products will help gain significant market share in 2022
World Copper poised for PEA for Escalones, says Fundamental Research Corp, which starts coverage with a 'Buy'
Naturally Splendid appoints George Ragogna as new chief financial officer
Mydecine partners with Combat Stress to treat PTSD in veterans with psilocybin
Karora Resources says third major Beta Hunt shear zone extended to over 500m of strike with potential to extend over 2 km
Harbor Custom Development to accept Bitcoin and 12 other digital currencies as payment for its real estate
Newrange Gold poised to get drill rigs turning at Red Lake projects
Benchmark Metals reveals high-grade intercepts and extends mineralization at Dukes Ridge deposit on Lawyers gold-silver project
CleanSpark achieves major milestone at 2 EH/s hashrate
Esports Entertainment receives approval to kick off betting operations in New Jersey
Todos Medical announces data lock for Tollovir Phase 2 clinical trial for treating hospitalized COVID-19 patients
Kovo HealthTech forecasts 30% year-over-year organic growth in 2022
Deepspatial expands partner program with new infrastructure client in India
AIM ImmunoTech announces positive results from Phase 1/2 study of intraperitoneal chemo-immunotherapy in advanced recurrent ovarian cancer
Kenorland options Hunter Project in Quebec to Centerra Gold Inc
Champion Gaming (TSX-V:WAGR) Group awarded Vendor Minor sports betting license in Colorado
Starton Therapeutics says STAR-LLD study successfully demonstrates continuous drug delivery of lenalidomide from a transdermal patch
OTC Markets unveils the 2022 OTCQX Best 50, a ranking of the top-performing OTCQX companies in the prior calendar year
PowerTap Hydrogen Capital says Pinakin Patel, co-founder of subsidiary AES-100, elected to California Hydrogen Business Council
Mandalay Resources hits some of the 'best grades seen at Björkdal' with recent drilling
Sassy Resources (CSE:SASY, OTCQB:SSYRF) receives drill permits for Highrock Uranium Project in Saskatchewan’s Athabasca Basin
KetamineOne changes name to Wellbeing Digital Science
OTC Markets unveils the 2022 OTCQX Best 50, a ranking of the top-performing OTCQX companies in the prior calendar year
Silvercorp Metals hits high-grade silver and zinc at its SGX mine in China
Bam Bam Resources (CSE:BBR) pleased with progress made at Majuba Hilll; awaits results from latest drill round
Xigem Technologies (CSE:XIGM, OTCQB:XIGMF) closes on acquisition of Cylix Data
ESE Entertainment to enter metaverse with new business division
Algernon Pharmaceuticals includes novel salt forms of DMT in its recent IP patent applications
Bragg Gaming subsidiary ORYX Gaming goes live in the UK with Novibet
XPhyto Therapeutics realizing 'significant synergies' after integration of 3a-diagnostics GmbH
CULT Food Science bolsters its executive team through the addition of an experienced cellular agriculture entrepreneur, Lejjy Gafour, as its president
O3 Mining reports more encouraging drill results from Québec
Metal Energy starts drilling at its Strange nickel project in northwestern Ontario
9.42am: US benchmarks plunge at open
US shares started firmly lower in New York on Monday as traders continue to fret about rising inflation and tightening monetary policy.
The Dow Jones Industrial Average slumped 410 points at 33,855, while the S&P 500 dropped almost 65 points at 4,332.
The tech-laden Nasdaq index dropped around 257 at 13,511.
Last week, US stocks finished lower with the Dow Jones posting its worst week since October 2020.
"As of Friday’s close, global markets had lost around 6% from their high on 4 January. There have been no major new developments to trigger the latest fall. Rather, it is mainly just a continuation of the same worries bugging markets since the start of the year, namely the surge in inflation and the policy tightening now planned to bring it back under control," noted Rupert Thompson, chief investment officer at Kingswood integrated wealth management group on Monday.
"Equity corrections are far from unusual at the start of Fed tightening cycles and have in fact been the norm in the past. Sharp jumps in bond yields, as we have seen in recent weeks, are also prone to trigger market falls. The important point, however, is that these declines have tended to be temporary and followed by renewed gains," he added.
He added that there was "no obvious immediate catalyst to trigger an easing of concerns and a market rebound".
"A marked fall in inflation would clearly be very helpful but no relief on this front is likely for a few months yet."
6.30am: US stocks seen opening down
US stocks are expected to extend their losses as investors await the outcome of the US Federal Reserve’s two-day meeting on Wednesday and prepare for more earnings reports from large tech companies including Apple, Microsoft and Tesla.
Futures for the Dow Jones Industrial Average sank 1.51% in Monday pre-market trading, while the broader S&P 500 index dropped 2.13% and the Nasdaq 100 slumped by 3.14%.
Stocks closed down sharply on Friday as streaming giant Netflix’s losses dragged the Nasdaq index deeper into correction territory.
Netflix’s stock tumbled 22% after the company’s fourth-quarter earnings report showed a slowdown in subscriber growth.
The Dow dropped by 1.3% to 34,265 and the S&P 500 declined 1.89% to 4,398. The Nasdaq fell 2.72% to 13,769, taking this year’s losses to about 12%.
“Anyone hoping for a measure of calm on the markets after a testing period is likely to be disappointed as we start what could be another turbulent week,” commented AJ Bell investment director Russ Mould
“The Federal Reserve is meeting on Wednesday amid expectations of a first interest rate hike in March and more increases to come this year than had previously been pencilled in. This has been signalled by a rise in bond yields."
Mould noted that the hardening of monetary policy has negative implications for the valuations of tech stocks, already under pressure following big slumps in recent weeks.
“Perhaps Apple, Microsoft and Tesla can come to the rescue with some knockout numbers when they report this week. On the other hand, a series of disappointing updates from these technology titans would only undermine sentiment further,” he added.