4:05pm: US equities close down in volatile session
US stocks closed down amid volatility as the Dow Jones Industrial Average recovered from a decline of more than 800 points for a second day in a row late in the session.
The unusual burst of volatility comes as the Federal Reserve is preparing investors for tighter monetary policy.
The Dow on Monday rallied from a more than 1,000-point loss to close higher for the first time ever. But a day later the index dropped by 68 points, or 0.20%, to 34,296.
Also, the S&P 500 declined 1.22% to 4,356 and the tech-heavy Nasdaq fell 315 points, or 2.28%, to 13,538.
12:05pm: US indices in red
US stocks continued to drop around midday on Tuesday as investors looked nervously ahead to tomorrow’s Federal Reserve policy-setting meeting.
By noon, The Dow Jones Industrial Average had shed 477 points, or 1.3%, at 33,887, while the tech-laden Nasdaq Composite and the broader S&P 500 lost 3% and 2.2%, respectively.
“A poor performance for January seems all but guaranteed as we head towards tomorrow’s FOMC decision,” said Chris Beauchamp, chief market analyst at online trading platform IG. “Despite Monday’s remarkable bounce from the lows the selling in the US has restarted, driving the Dow back below 34,000 for a time.”
He added: “It is still the fear of what the Fed might say tomorrow that is driving US stocks lower ... This is a bit odd however – if Powell and co really bring their hawkish game to tomorrow’s meeting and risk does sell off again European markets will not be untouched, and today’s relative calm will look awfully misplaced.”
11.00am: Proactive North America headlines:
Pfizer and BioNTech set to begin trials of Omicron specific vaccine
Haywood Capital Markets targets C$1.40 a share for Red Pine Exploration as company bids to extend Surluga resource
Silverton Metals completes geophysical 3D modeling and starts seismic survey at its Pluton silver-zinc-lead project in Mexico
Pathfinder Ventures (TSX-V:RV) pledges to support electric RVs at its Pathfinder Camp Resorts
Contakt World (CSE:HELP) releases latest version of HealthCheck as it looks to broadens its portfolio
Scottie Resources reports high-grade gold intercepts at the Blueberry Zone in British Columbia's Golden Triangle
HighGold (TSX-V:HIGH, OTCQX:HGGOF) Mining discovers new gold-bearing structure at Johnson Tract defining a prospective target corridor in Alaska
Amvest Capital and Welsbach Holdings form new energy material fund
Canadian Securities Exchange reports record 2021 performance
Marble announces new rent reporting service for its MyMarble platform, powered by FrontLobby
OTC Markets Group announces fourth quarter 2021 performance and quarterly index rebalancing
Melkior Resources lays out plans to follow up on multiple targets in 2022 at Val d'Or property
Altaley Mining posts preliminary 4Q revenue of C$19.9M from Campo Morado in Mexico
Snowline Gold makes second 'significant' gold discovery in the Yukon at Valley target
Doré Copper Mining announces 2022 drilling program at flagship Corner Bay and Devlin projects
Nextech AR joins Khronos Group as a contributor member for creating advanced technology
DGTL reports new $200,000 campaign for Nasdaq-listed esports gaming client
The Valens Company (TSX:VLNS, OTCQX:VLNCF) launches two new cannabis brands in the value and premium markets
ImagineAR signs licensing agreement with Jet Media Network to provide immersive augmented reality for celebrity mobile apps
RespireRx Pharmaceuticals (OTCQB:RSPI) notes publication of paper on GABAkine KRM-II-81, which it is advancing for epilepsy and pain
Tribe Property Technologies announces partnership with NextLevel Drycleaners
Mindset Pharma enters manufacturing deal with leading CDMO for next-generation psilocybin drug candidate, MSP-1014
Fobi AI (TSX-V:FOBI, OTCQB:FOBIF) integrates with US payments giant Square offering real-time data analytics to retailers around the globe
ESE signs agreement with Skinwallet to enter metaverse with gaming and esports projects
Aurelius Minerals says it is encouraged by latest drill results from Aureus East ahead of updated resource this quarter
9.45am: US stocks plunge at open
US benchmarks started firmly in the red on Tuesday amid more volatility and after stocks pulled back ground on Monday.
In early deals in New York, the Dow Jones Industrial Average tanked around 349 points to stand at 34,015. Then S&P 500 lost around 52 at 4,357. The tech-heavy Nasdaq Composite Index shed around 173 at 13,681.
It comes as traders continue to be fearful on stalling growth, rising inflation and the prospect of hiked interest rates.
Also, the International Monetary Fund (IMF ) on Tuesday cut its forecast for global economic growth for 2022 due to weaker outlooks for China and the United States. It now sees growth of 4.4% this year. followed by a slowdown to 3.8% in 2023.
The global economy grew an estimated 5.9% last year.
6.30am: US stocks seen opening down
US stocks are expected to open lower, after rebounding in Monday trading, as the Federal Reserve starts its two-day rate-setting meeting amid rising geopolitical tensions, mixed corporate earnings reports and inflation that needs to be brought under control.
Futures for the Dow Jones Industrial Average declined 0.53% in Tuesday pre-market trading, while the broader S&P 500 index dropped 0.99% and the Nasdaq 100 shed 1.43%.
Stocks finished higher on Monday, bouncing back after the S&P 500 entered correction territory ahead of the Fed’s rate decision and some key earnings reports this week.
The Dow rose 0.29% to 34,365, while the S&P 500 added 0.28% to 4,410 and the Nasdaq gained 0.63% to 13,855 - after earlier trading close to 5% lower.
“Although indices lurched haphazardly back into positive territory on the Nasdaq and S&P 500, a heightened sense of nervousness remains about just how tough the Federal Reserve will talk and act to try and get increasingly troublesome inflation under control,” commented Susannah Streeter, senior investment and markets analyst, Hargreaves Lansdown.
“The deteriorating situation in Ukraine with the stand-off continuing as diplomats moves falter is adding to heightened tensions on the markets, with fears a conflict could unleash a fresh front of chaos, including making the energy crisis facing Europe even worse.”
Streeter noted that a string of corporate results from tech giants including Microsoft, Apple and Tesla could either quell fears about valuations tumbling further or build up a barrier of support around the sector.
“Microsoft will report later and expectations will be high given how accustomed investors have become to outstanding results, with double-digit growth in every division in the last quarter," Streeter added.
"With such high bars set, falling short of expectations could set off a fresh round of selling.’’