4.02pm: S&P fell 1.8%
US stocks ended with sharp losses Wednesday, as the S&P 500 plunged deeper into the correction territory amid fears of the Ukraine-Russia war.
At closing, the S&P 500 shed 1.8% at 4,226, while the Nasdaq Composite suffered heavy losses of 2.6% at 13,037. The Dow Jones Industrial Average lost over 450 points or 1.4%, closing at 33,132.
Among companies with major losses on Wednesday were Macy’s– down by 5%, and Tesla whose shares were down by more than 7%.
Investors continued to fret about the inflation and Fed’s monitory policy decision– all while the Ukraine-Russia standoff threaten the supply chain, intensifying inflationary pressure.
12.05pm: S&P 500 plunge deeper
US benchmarks declined midday as the morning gains faded amid the escalating Russia-Ukraine tensions.
The S&P 500 plunged 0.2%, falling deeper into the correction territory, while the tech-savvy Nasdaq Composite lost 0.5%, and the Dow Jones Industrial Average shed 18 points or flatline percentage change at 33,574.
“Yet another bounce has been sold, with stocks turning lower as the US session goes on,” said Chris Beauchamp, chief market analyst at online trading platform IG.
While the first round of sanctions imposed on Russia by the West may have been mild, a Russian response and further Western sanctions will put further pressure on the global economy, the analyst warned.
“As well as coping with the actual conflict itself, should it come, investors have to worry about headline risk in the form of retaliatory sanctions from the Russian side and further sanctions on Moscow by the West,” said Beauchamp.
He added, “For a market that was already worrying about how interest rate rises and higher inflation would hit growth, the prospect of more sanctions and a fresh hit to economic growth means that equity valuations are still being called into question.”
On the corporate front, Lowe’s Companies stocks went soaring after its upbeat quarterly earnings indicating a 5% increase in sales. The company shares gained over 3% on Wednesday.
11.05am: Proactive North America headlines:
Globex Mining Enterprises reports completion of infill drilling on iron vanadium royalty property in Quebec
Vejii says record revenues for January 2022 reflect organic and acquisitive growth
Baird initiates coverage of TRACON Pharmaceuticals (NASDAQ:TCON) with 'outperform' rating and $10 price target
Electra Battery Materials partners with Ontario government, Glencore, and Talon Metals on battery materials park study
Gratomic updates on drill progress at Capim Grosso project; reports visual graphite in six holes
South Star Battery Metals wins approval from Brazilian mining authority for final exploration reports for Santa Cruz Mine
Royal Road Minerals reveals results from six more drill holes at Guintär project in Colombia
Silver Range Resources (AIM:RRL, ASX:RRS) says mineralization at Strongbox property could be much more widespread than initially thought
Therma Bright says it received patent for device for applying a topical treatment from USPTO
New Pacific Metals (TSX:NUAG, NYSE:NEWP) sees broad gold mineralization and encouraging grades in new drill results from Carangas project
Esports Entertainment unveils plans to install OMEGA at GAMMAX locations in the Netherlands
Hawkmoon Resources applies for permits for the 2022 Wilson drill program in Quebec
Potent Ventures appoints former Pepsi executive, Bruce Gillies to its Advisory Board as it prepares to launch The Gummy Project
Context Therapeutics (NASDAQ:CNTX) prepares for a busy 2022 as it advances women’s oncology treatments
Golden Shield Resources (CSE:GSRI) awaiting results after initial 13-hole drill program at Marudi Mountain gold project in Guyana
Wishpond Technologies recognized by Gartner Digital Markets as it advances marketing-focused online business solutions
ElectraMeccanica (NASDAQ:SOLO) Vehicles announces initial fleet purchase of 20 SOLO Cargo EVs from Mountain Mike's Pizza
Think Research processed 300K-plus digital referrals via partnership with Ontario eServices Program and CognisantMD in 2021
Minto Metals receives exploration permit for Minto Mine property in Yukon; gets set for 30,000 metre drill program
Goldseek Resources kicks off 4,000-metre drill program at its Beschefer project in Quebec
Algernon Pharmaceuticals begins manufacturing Repirinast and launches new chronic kidney disease research program
PharmaDrug announces positive results from DMT-analogue program to treat glaucoma
ME2C Environmental (OTCQB:MEEC) signs multi-year contract renewal with an annual value expected to reach $1.5 million
Adastra Holdings (CSE:XTRX) expands co-manufacturing portfolio as it scales its production facility
ImagineAR says heavyweight boxing champion Tyson ‘Gypsy King’ Fury joins metaverse as hologram e-greeting on FameDays.com
Aurion Resources (TSX-V:AU) announces start of winter drill program at Finland joint venture
C3 Metals hits 'some of the highest copper grades to date' in recent drilling at its Jasperoide project in Peru
Cloud DX (TSX-V:CDX, OTCQB:CDXFF) and Medtronic sign first contract with Ontario Hospital
Esports Entertainment posts fiscal 2Q revenue of $14.5M; remains 'extremely bullish' about the year ahead
Biocept outlines how its CNSide cerebrospinal fluid assay could improve treatment options for brain cancers
i-80 Gold commences underground mining program at Granite Creek in Nevada
CULT Food Science completes seed investment in precision fermentation dairy firm De Novo Dairy
CareRx welcomes Ontario Ministry of Health’s postponement of changes to long-term care pharmacy funding
Benchmark Metals says latest drill results from Cliff Creek deposit at Lawyers show potential for open pit and underground mining
Plurilock announces Spring 2022 product release
10.00am: Markets rebound
US markets opened in the green a day after the S&P ended in the correction territory amid escalating geopolitical tensions between Russia and Ukraine, leading the US to impose sanctions against Moscow.
The S&P 500 recovered its losses, gaining 0.5% at 4,318, while the Dow Jones Industrial Average gained 0.2% or 70 points, at 33,667, and the tech-heavy Nasdaq Composite was up by 0.2%.
“Stock markets are back in positive territory on Wednesday as investors await Russia's response to initial sanctions from the West,” said Craig Erlam, senior market analyst, UK & EMEA, OANDA.
Erlam noted that as long as both sides continue to claim a desire to find a diplomatic solution and troops remain on the right side of the border, "we could continue to see these kinds of rebounds.”
“Markets have come under heavy pressure this year and investors are going to be tempted back in at these levels,” he added.
Investors are experiencing heightened pressure and market volatility ahead of threats of the Ukraine-Russia war, as well as the potential Federal Reserve interest rate hikes— likely to be bumped by at least 25 point basis in the mid-March meeting.
6.30am: US stocks seen opening up
US stocks are expected to open higher, recovering some of their losses after the European Union and countries including the US, the UK and Japan imposed only moderate sanctions on Russia after President Vladamir Putin sent troops to two breakaway regions of Ukraine.
Futures for the Dow Jones Industrial Average rose 0.5% in Wednesday pre-market trading, while those for the broader S&P 500 index gained 0.58% and the tech-heavy Nasdaq added 0.88%.
US equities closed lower on Tuesday amid the Russia-Ukraine standoff, with concern that the geopolitical tensions may also lead to supply chain issues, adding to inflationary pressures as the Federal Reserve prepare to raise interest rates as early as March.
At the close, the Dow Jones Industrial Average fell 1.42% to 33,597, while the S&P 500 was down by 1.01% at 4,305, and Nasdaq Composite shed 1.23% at 13,382.
“Markets are peeking out from behind the risk-off curtain, as sanctions announced by the US, UK, and Europe against Russia didn’t live up to the market’s worst fears,” commented Han Tan, chief market analyst at Exinity Group.
“Most Asian markets are rising alongside European and US equity futures, as equity bulls attempt to pull the S&P 500 out of a technical correction once more.”
Tan noted that safe havens have moderated with spot gold easing back below $1,900, Treasury yields are pushing higher, and the dollar is ceding ground to most of its G10 peers.
“Instead of sending the strongest message possible, the first tranche of sanctions by Western allies are seen as mere thumbtacks that only induce limited discomfort on Russia, at least for now. Some of the sanctions on Russian banks are largely symbolic and have limited impact on its financial dealings with the rest of the world.”
Although Ukraine’s Western allies have highlighted further scope for economic retaliation, Tan said Tuesday’s announcements suggest more leeway for Russia in the interim, noting that the EU’s measures still require confirmation from member states, while US lawmakers continue wrangling over a bipartisan package of Russian sanctions.