4.05pm: Tech rally fizzles following yesterday's surge
US stocks finished the trading session sharply lower after Federal Reserve Governor Lael Brainard said the central bank needs to reduce its balance sheet “rapidly” to drive down inflation.
At the close, the Dow fell 281 points to 34,641, while the S&P 500 eased 57 points at 4,525 and the tech-heavy Nasdaq slid 328 points to 14,204.
Notable movers included shares of Twitter Inc (NYSE:TWTR), which gained 2% after Elon Musk said he will join the company’s board of directors a day after disclosing a 9.2% stake in the social media company.
12:00pm: US equities lower midday
US stocks were lower midday Tuesday as investors pondered the Federal Reserve’s next move amid concerns the US could be headed toward a recession.
Stocks hit their lows of the session and rates hit their highs after Fed Governor Lael Brainard said Tuesday that the central bank needs to shrink its balance sheet “rapidly” to drive down inflation.
Tuesday’s moves come as investors await the release of Fed meeting minutes on Wednesday from last month when it raised rates for the first time in years and indicated six more hikes in 2022.
As of noon, the Dow Jones Industrial Average was down 89 points, or 0.25%, to 34,834. The S&P 500 fell 32 points, or 0.69%, to 4,551.
And the tech-heavy Nasdaq decreased 247 points, or 1.70%, to 14,284.
10am: Proactive North America headlines:
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DGTL Holdings says Hashoff subsidiary extends social media marketing campaign with e-sports gaming client
SPYR (OTCQB:SPYR) reveals details of its subsidiary Applied Magix's 'Secret Lab', and the developments and directions being explored in 2022
Nextleaf awarded US patent for technology that maximizes cannabinoid yield and reduces waste
Predictmedix showcases Safe Entry Station tech at “major” Las Vegas entertainment event
Phunware says its PhunToken is now available on the Uniswap decentralized crypocurrency exchange
CleanSpark reports monthly production of 318 bitcoin in March 2022, while daily production reached a high of 10.57 in the month
ImagineAR announces licensing agreement to integrate SDK platform into Professional Bull Riders' mobile app PBRewards
CO2 GRO announces technology trial at a rose greenhouse in Ecuador
The Valens Company (TSX:VLNS, OTCQX:VLNCF) closes previously announced bought deal public offering of units for total gross proceeds of approximately C$32.3M
Los Andes Copper set to advance Vizcachitas pre-feasibility as it closes US$4M Queen's Road Capital investment
Bridgeline Digital says it closed 33 license sales totaling over $650,000 in ARR (annual recurring revenue) in the second quarter of fiscal year 2022
Vox Royalty (TSX-V:VOX) says “meaningful progress” made in 2022 on development of royalty interest projects in Brazil and Australia
South Star Battery Metals strikes US$28M streaming agreement for Santa Cruz Graphite project in Brazil
Blue Sky Uranium says results from drill program at Ivana deposit in Argentina indicate “great success”
Tiziana Life Sciences receives FDA go-ahead to enroll more multiple sclerosis patients in expanded access program for treatment with intranasal foralumab
Guardforce AI (NASDAQ:GFAI) expands features of its Macau-based robotic solutions
Group Eleven Resources extends mineralization at northwest extension at the Carrickittle zinc prospect in Ireland
SpotLite360 IOT Solutions (CSE:LITE) executes strategic relationship with American Cannabis Consulting
Gevo signs MoU with digital agriculture leader Farmers Edge to deliver industry first carbon inset management program
GameSquare announces fully subscribed US$3M private placement, sees entry of a new strategic investor
Edison Lithium moves forward with exploration plan for Argentinian lithium properties
Empower Clinics launches COVID-19 testing solutions for cruise travel passengers in Vancouver, British Columbia
Major Precious Metals says over 11,000 new core and channel samples collected on the Skaergaard project in Greenland
9.49am: US shares mixed at open
US shares started muted and mixed as the cautious market mood continues and traders await the publication of Federal Reserve minutes on Wednesday.
The Dow Jones added around 58 at 34,980, while the S&P 500 added around a point to stand at 4,583.
The tech heavy Nasdaq dropped around 39 points at 14,449.
The minutes from the last US central bank policy meeting will be closely poured over to see if there are any clues as to the trajectory of interest rate rises and the chances of the US going into a recession.
On the corporate front, the big news is Twitter and that Elon Musk is to join the board of directors. It came after news the Tesla and SpaceX boss had bought a 9.2% stake in the social media company.
Twitter shares advanced over 6% on Tuesday.
6.30am: Slightly weaker start predicted
US stocks were seen opening modestly lower on Tuesday as oil prices resumed gains on expectations of fresh sanctions on Russian exports as hostilities in Ukraine continue.
Reports of atrocities committed by Russia in Ukraine are adding to overall market nervousness. Reaction from the West will be closely watched as further sanctions will likely drive inflationary pressures at a time when commodity prices are already at elevated levels.
Futures for the Dow Jones Industrial Average dipped 0.2%, while those for the S&P 500 were down 0.2%, and contracts for the tech-heavy Nasdaq-100 were also 0.2% lower.
“EU leaders will reportedly meet tomorrow, and the additional sanctions could include more action on Russian oligarchs, more exports restrictions, an eventual port ban on Russian ships, and a potential ban on Russian energy exports,” said Ipek Ozkardeskaya, senior analyst at Swissquote Bank.
“If leaving the Russians without Big Macs, Starbucks coffees, or Nike shoes hasn’t been effective in discouraging Putin from ending the war in Ukraine, banning the Russian energy imports should make a difference, yet it would also mean a severe energy crunch in Europe, and a big hit to economic growth.
“But, not everyone is scared. Lithuania has become the first European country to announce a total ban on Russian gas imports, and the possibility of other nations joining Lithuania in banning Russian oil and gas gives a boost to oil bulls,” she added.
Benchmark oil prices futures were higher, shrugging off some of the falls seen last week in the wake of news that the US will release up to 1 million barrels of oil a day from its vast reserves. Brent crude futures were up 1.1% to $108.69 a barrel, while WTI crude futures were 1.1% higher at $104.42 a barrel.
On Wednesday, the Federal Reserve’s minutes from its March meeting at which interest rates rose for the first time since 2018, will be in focus. Investors will be looking out for signs that interest rates in the world’s biggest economy are about to rise rapidly, with bond markets pricing in a 50 basis-point increase at the next rate-setting meeting in early May.
Elsewhere, shares in Twitter were up around 3% in premarket deals, having risen 27% on Monday following news that Elon Musk has taken a 9.2% stake in the company.
Contact the author at jon.hopkins@proactiveinvestors.com