4.05pm: Markets end with gains
US stocks closed with significant gains Wednesday as the S&P 500 recorded its best day since June 2020, while commodity prices fell amid the ongoing war between Ukraine and Russia.
At the closing, the Dow Jones Industrial Average surged 654 points or 2%, at 33,286, while the S&P 500 added a significant 2.5% at 4,278, and the Nasdaq Composite gained 3.6%.
On the economic front, February's consumer price index is due on Thursday.
12.10pm: S&P 500 jump 2.5%
US markets remained sharply higher around midday as investors continued to weigh the impact of the Russian-Ukrainian war on rising commodity prices, extending volatility for equities.
At noon, the Dow Jones Industrial Average was almost 700 points, or 2.1% higher at 33,332, while the S&P 500 advanced 2.5%, and the Nasdaq Composite gained 3.1%.
Craig Erlam, senior market analyst, UK & EMEA, for OANDA noted that "stocks have fallen a lot in recent weeks and comments from (Ukraine) President Zelensky around NATO membership could be viewed as a first and important step towards a compromise between Ukraine and Russia.”
“Perhaps what we're therefore seeing is a hopeful rally rather than one built on solid foundations but it's the first glimmer of hope we've had in weeks,” Erlam noted. “I'd be surprised if it's sustained for any significant period of time unless we see actual progress towards a ceasefire and Russian exit.”
Oil prices have been volatile since the outbreak of the Russian-Ukraine geopolitical crisis, Erlam noted, “with Brent crude at one point rising a few percent before reversing course to trade down more than 5% on the day.”
Brent has slipped back towards $120 where it is now finding some support but these markets remain extremely volatile, he added. “Further selling could quickly attract interest given the recent moves we've seen and further escalation, or even Russia pouring cold water on the idea of a deal, could see it rally strongly once more.”
Among companies gaining on Wednesday, shares of Salesforce rose 6.4%, while Nike gained 5.6%, and JPMorgan added 5.2%.
On the economic front, January’s JOLTS report signaled robust US labor demand, while the jobs markets continued to be historically tight. Job openings were down by 190,000 at 11.3 million compared to December’s record high of 11.5million.
10.10am: Proactive North America headlines:
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New Age Metals (TSX-V:NAM, OTCQB:NMTLF) discovers high-grade palladium samples at its River Valley deposit in Ontario
Manganese X Energy boss Kepman highlights company's strategic asset as battery driven demand for manganese grows
Newrange confirms structural interpretation with first drill hole at North Birch project in Ontario
Harbor Custom Development completes new senior secured revolving credit facility of $25M
PharmaDrug reports interim positive findings for combination of cepharanthine and frontline chemotherapy for IND-enabling prostate cancer study
CULT Food Science selects Sydsel Africa for its CULT PRIZE initiative aimed at bolstering IP incubation platform
Real Luck Group appoints Bo Wanghammar to its board of directors
Goldseek targets Central Shallow and Deep zones in 4,000-metre Beschefer drill program
Imperial Helium reveals positive results from independent tests on the Sub-Salt Zone in Steveville-3 well showing "valuable" gas
Context Therapeutics (NASDAQ:CNTX) to showcase its compounds at this year's American Association for Cancer Research (AACR) annual meeting
Numinus Wellness receives Health Canada approval to study Ayahuasca brews and San Pedro cactus for psychedelic research
88 Energy tipped as a ‘buy’ as high impact drilling gets underway in Alaska
Kontrol Technologies says its Global subsidiary is awarded $9.7M HVAC and automation project for Toronto high-rise building
AIM ImmunoTech says data from the ongoing Phase 2 ovarian cancer clinical study utilizing Ampligen accepted for presentation at AACR 2022 Annual Meeting
Fabled Copper reports latest positive sampling results from last year's field work at Muskwa project
TraceSafe appoints Mark Leung as its new Chief Financial Officer
Marvel says it is 'very excited' by preliminary data from ground magnetic survey at Highway North uranium project in Athabasca Basin
Alternus Energy energises 13.6 megawatt solar park at Rotterdam Airport, increasing total operating assets by 10%
Xigem Technologies (CSE:XIGM, OTCQB:XIGMF) outlines how its tech can help businesses succeed in the new remote working 'normal'
i-80 Gold completes first sale of gold in company history
Looking Glass Labs enters collaborative arrangement with Vietnam-based YellowBlocks
Thesis Gold starts 10,000-metre spring drilling program at its Ranch gold project in British Columbia
10.00am: Dow adds 500 points
US stocks opened higher Wednesday as oil prices fell back, extending volatility in markets while investors closely monitor conflict between Russia and Ukraine.
At the open, the Dow Jones Industrial Average gained more than 500 points or 1.6% at 33,145, while the tech-laden Nasdaq Composite added 2%, and the S&P 500 advanced 1.6%.
The surge came after markets declined for a fourth session on Tuesday, pushing the Dow into a correction zone amid fears over recession due to escalating oil prices.
“There was a sense of calm in the markets this morning, evidently on the back of remarks made by Russian Foreign Minister,” noted Fawad Razaqzada, market analyst at ThinkMarkets. “But we are still inside the eye of the storm.”
“Don’t forget that the US just yesterday decided to launch an all-out economic war against Russia, banning imports of oil and gas from Russia,” he said. “There will be consequences: high gas prices, even more inflation, and retaliation from Russia.”
Bank stocks gained early on Wednesday. Wells Fargo added almost 5%, and shares of JP Morgan surged 4%. Airline and cruise line stocks were also higher, including United Air Lines shares in which soared by 10%.
On the corporate news front, shares of dating site Bumble Inc (NASDAQ:BMBL) were up by a significant 40% after its better-than-expected quarterly earnings.
6.30am: US stocks seen opening up
US stocks are expected to open sharply higher, recovering from falls on Monday and Tuesday that saw the blue-chip Dow Jones Industrial Average enter correction territory.
While a US ban on all Russian fuelled a further rise in energy prices, adding to global growth and inflation concerns, reports that Ukraine will no longer pursue NATO membership and is open to dialogue have raised hopes of a settlement of the Ukraine conflict.
Dow futures rose 1.5% in Wednesday pre-market trading, while those for the broader S&P 500 index gained 1.64% and the tech-heavy Nasdaq added 2.05%.
Stocks closed lower on Tuesday after a volatile day as fears of recession and rising inflation increased after US President Joe Biden announced a ban on imports of Russian oil and gas while the UK said it will phase out Russian energy imports by the end of the year.
The Dow slipped 0.56% to 32,633, while the S&P 500 lost 0.72% to 4,171 and the Nasdaq was down by 0.28% at 12,796.
“The early respite in US markets proved brief indeed, as the confirmation of a ban on Russian oil sapped investor optimism once more,” commented Richard Hunter, head of markets at interactive investor. “The oil price rose again on prospects of diminishing supply and now stands ahead by 68% in the year to date.”
With the EU also looking to end its reliance on Russian gas, Hunter noted that the near term prospects for inflation remain extremely high and on top of what were already elevated levels.
“Perhaps unsurprisingly global growth concerns ensued, with the main indices retreating again,” Hunter added. “Some strength in the bigger tech names was not enough to prevent another Nasdaq decline, with the index moving further into bear market territory and now down by 18.2% in the year to date. The Dow Jones and S&P 500 also remain in correction territory, having lost 10.2% and 12.5% respectively in 2022.”