4.05pm: Tech shares lead a broad-based market advance
US stocks finished the trading session higher as investor shrugged off the possibility of pending recession and more Russian sanctions.
At the close, the Dow gained 104 points to 34,923, while the S&P 500 added 37 points at 4,583 and the tech-heavy Nasdaq climb 271 points to 14,533.
Notable movers included shares of Twitter Inc (NYSE:TWTR), which soared more than 27% after Tesla CEO Elon Musk disclosed that he has acquired a 9.2% passive stake in the social media platform.
12:00pm: US equities higher midday
US stocks were higher midday Monday as investors shook off recession fears and bid up tech stocks.
Tech shares, which were among the hardest-hit sectors in the first quarter as investors feared the Fed’s rate-hiking plans could hinder the group, led the market higher.
Twitter gave the Nasdaq a lift after shares surged more than 25% following news that Elon Musk purchased a 9.2% passive stake in the company
As of noon, the Dow Jones Industrial Average was up 48 points, or 0.14%, to 34,864. The S&P 500 rose 25 points, or 0.56%, to 4,570.
And the tech-heavy Nasdaq jumped 221 points, or 1.55%, to 14,483.
10.50am: Proactive North America headlines:
Great Atlantic Resources begins 2022 prospecting, geochemical sampling at its Mascarene property in New Brunswick
Endexx says current company financials and compliance make it “optimistic” about OTCQB up-list
Sigma Lithium ends 2021 with C$155M in cash to move Grota do Cirilo project into production
Todos Medical says Tollovir and Tollovid show robust inhibitory activity against 3CL protease of strains of Omicron variant
Murchison Minerals says Barre de Fer zone shows good potential for expansion on its HPM project in Quebec
MedX signs distribution agreement with Vitamed Biomedical to launch its teledermatology screening platform in Italy
Globex Mining says Troilus announces new gold discovery on its Testard royalty property
Marble Financial says it and CEO Karim Nanji receive nominations in Canadian Lenders Association's (CLA) 2022 Leaders in Lending Awards
SoLVBL Solutions says its digital payment instrument authentication seal wins Notice of Allowance from US Patent Office
Starton Therapeutics says poised for Phase 2 dose-optimization study following FDA clearance of IND application for STAR-OLZ
Dalrada announces partnership with Puradigm air and surface purification systems
Wishpond Technologies acquires referral marketing firm Viral Loops in US$2.3M deal
Canada Silver Cobalt updates on exploration activity at Graal nickel-copper-cobalt discovery in Quebec; appoints new CFO
American Resources Corporation (NASDAQ:AREC) increases specialty carbon order book at record prices
O3 Mining publishes 2021 ESG report outlining company's sustainable activities
Champion Gaming (TSX-V:WAGR) partners with Sports Info Solutions to launch co-branded content and insights
Forward Water inks strategic partnership deal to sell Aquaporin’s forward osmosis products
HempFusion (TSX:CBD.U, OTCQX:CBDHF) Wellness reports a rise in Q4 and fiscal 2021 revenue amid declining costs
Fobi AI (TSX-V:FOBI, OTCQB:FOBIF) appoints Annie Chan as its first full-time chief financial officer
XPhyto Therapeutics says advancing Rotigotine transdermal patch towards final pivotal study in fourth quarter this year
CULT Food Science forms special committee for IP development and investment in novel air protein and starch synthesis technology study
Endeavour to launch expansion of Sabodala-Massawa as study confirms its potential to become top-tier gold mine
Looking Glass Labs says House of Kibaa studio team showcases Project Origin metaverse at recent Miami NFT Week
Wellbeing Digital Sciences (NEO:MEDI.AQN, OTCQB:KONEF) welcomes Najla Guthrie as its new CEO
Hapbee Technologies offers smart wearable technology designed to help with work stress, productivity, sleeping, and relaxation
9.44am: US stocks start mixed Monday
US stocks started mixed on Monday but tech shares headed north as the shine came off recent market rises amid continued revelations about the war in Ukraine.
The Dow Jones Industrial Average shed around 119 points at 34,698, while the S&P 500 shed nearly two points at 4,543. The tech-heavy Nasdaq added around 41 points at 14,303.
On Friday, all three benchmarks posted gains with the S&P 500 reporting its third straight week of gains after the non-farm payroll report, despite falling short of economists’ estimates, still showed a robust 431,000 jobs were added in March this year.
Craig Erlam, senior market analyst, at Forex group Oanda, said markets had started the week cautiously.
"Virtual talks are set to resume as Europe prepares fresh sanctions against Russia following the release of disturbing images over the weekend," he said in a note.
"Pressure is ramping up on Brussels to enforce a total ban on Russian energy imports in order to enforce real damage and punishment against the Kremlin for the invasion. Of course, it's easier for some to make such demands than others."
6.25am: Flat to higher start predicted
US stocks are expected to open flat to higher on Monday as investors continue to digest Friday's US non-farm payroll numbers for March which painted a picture of a tight labor market in the world’s biggest economy as the Federal Reserve considers further interest rate hikes.
Separately, reports that Russia has committed war crimes in Ukraine are keeping investors nervous, adding to overall market uncertainty. It remains to be seen if more sanctions on Russia's exports will follow and, in turn, add to worries about inflation.
Futures for the Dow Jones Industrial Average rose 0.05%, while those for the S&P 500 were up 0.2% higher, and contracts for the tech-heavy Nasdaq-100 rose 0.4%
“Inflation and geopolitics remain at the top of the agenda for traders while they wait for this week's most important economic event, which is the FOMC minutes,” Naeem Aslam chief market analyst at AvaTrade said. “The US jobs report hasn't affected the short-term trajectory for the Fed to increase interest rates a number of times this year, and some of them are most likely to take place concurrently. If we had seen a significant miss in terms of the US jobs report, then there was the slight possibility that the Fed may have thought about revising its policy.”
While the headline payroll numbers rose by a smaller-than-expected figure, the jobless rate fell to 3.6% from 3.8% a month earlier, the Labor Department reported Friday. The data added to fears of spiraling inflationary pressures, especially as Russia's invasion of Ukraine continues to drive commodity shortages.
Looking ahead, the Federal Reserve’s minutes from its March meeting at which interest rates rose for the first time since 2018, will be in focus. The minutes are due on Wednesday.
“The Fed minutes will be the highlight of the week, as the central bank is expected to reveal additional details on its balance sheet reduction plans. A drop in the Fed's securities holdings, which total over $9 trillion, would be another step toward tightening policy,” said Aslam. “Futures markets predict that the Fed will expand its firepower at its next meeting in early May, raising interest rates by 50 basis points, or half a percentage point.”
Benchmark oil prices futures were lower, still feeling the effects of news last week that the US will release up to 1 million barrels of oil a day from its vast reserves. Brent crude futures were down 1.4% to $103.28 a barrel, while WTI crude futures were 1.7% lower at $98.58 a barrel.
“Oil prices are highly likely to remain volatile this week as the crude oil price violated an important support level of $100. The move took place because investors reacted to the massive strategic oil reserve release from the US. However, it is important to keep in mind that this short-term measure to target lower oil prices is likely to run out of course soon as this doesn't resolve the long-term problem,” noted Aslam.
Contact the author at jon.hopkins@proactiveinvestors.com