4:05pm: US stocks close in the green
US stocks closed out Tuesday on a positive note, with investors proceeding with caution ahead of tomorrow’s Fed meeting where the central bank is widely expected to raise interest rates.
At the close, the Dow was up 67 points to 33,128 points.
Meanwhile, the S&P 500 had gained 20 points at 4,175 points, and the Nasdaq was up 28 points, closing at 12,564 points.
12:05pm: US stocks stable at noon
After a mixed start to the day, US stocks were stable at midday as investors look to tomorrow’s Fed meeting with caution.
The Dow had added 195 points or 0.6% to reach 33,256 points.
The S&P 500 was also in the green, up 0.8%, and the tech-laded Nasdaq was steady at 12,529 points.
Chief market analyst at CMC Markets UK Michael Hewson noted that there had been a cautious start to the day’s trading off the back of better-than-expected March factory order numbers and with the latest JOLTS numbers showing an increase in job openings from 11.5 million to 11.26 million.
“The jobs opening numbers suggest the Fed certainly has room to raise rates quite aggressively in the months ahead, before there is a significant effect on vacancy and unemployment levels,” Hewson said.
Chief market analyst at IG Chris Beauchamp added that May continued to be a disappointment for stocks.
“Investors might have been forgiven for hoping that yesterday’s late bounce in the US presaged further gains for stock markets today. But that has not been the case, and with the Fed’s rate hike edging closer a definite sense of nervousness pervades stocks,” Beauchamp said.
“Last time US stocks fell to these levels back in March a savage bounce followed, but earnings season has not really delivered enough good news for a rally to develop.”
11.15am: Proactive North America headlines:
Canaccord Genuity (TSX:CF, LSE:CF) repeats 'Speculative Buy' rating on Think Research stock following recent Q4 results
Burcon NutraScience inks term sheet with biggest shareholder for a proposed $10M credit facility
Vejii Holdings plots a path to profitability after key acquitions drive 4Q revenue
ION Energy says visit to Mongolia lithium sites reinforce the potential of the assets
Apple on the defensive over Apple Pay platform after European Commission preliminary finding
Playgon Games (TSX-V:DEAL, OTCQB:PLGNF) reports nearly $160,000 in FY2021 revenue as it builds out gaming platform
Western Magnesium applauds US national effort to secure critical minerals
Wellbeing Digital Sciences (NEO:MEDI.AQN, OTCQB:KONEF) names Dr Michael Ho as medical director of its MindScape ketamine clinic
MedX Health says revenue in 2021 rose from previous year despite tough conditions
Northstar Gold poised to expand its Bryce gold project in Ontario with Britcanna option
SPYR (OTCQB:SPYR) says Applied Magix Inc subsidiary may begin selling Apple HomeKit-compatible smart-home LED lighting
PharmaDrug advances its glaucoma research program with selection of lead DMT analog
Melkior Resources hits high-grade gold at the Carscallen project in Ontario
Zinc8 Energy Solutions (CSE:ZAIR) continues to expand its efforts towards commercialization
South Star Battery Metals announces small-scale pilot metallurgical testing program for Alabama Graphite (CSE:ALP) project
LexaGene says its MiQLab system successfully detects biohazard agents in US Army R&D test
enCore Energy welcomes uranium veteran Peter Luthiger to the role of COO
Empress Royalty boosts executive team with new CFO Meiklejohn
Hapbee Technologies says it has been included in the Wellness Category of Fast Company’s 2022 World Changing Ideas Award
Cabral Gold says drilling results from Cuiú Cuiú gold district further indicate high-grade corridor of mineralization
Golden Shield Resources (CSE:GSRI) reveals three new gold showings at its Marudi Mountain project in Guyana
United Lithium (CSE:ULTH) stakes large land position in past-producing lithium region of South Dakota
AMPD Ventures says its Departure Lounge subsidiary inks education collaboration deal with Centre For Digital Media (CDM)
Wishpond Technologies announces record recurring revenue in April 2022 led by healthy organic growth
i-80 Gold says drilling in South Pacific Zone at Granite Creek returns best intercept to date
Bam Bam Resources (CSE:BBR) kicks off more soil sampling at two Majuba Hill project target zones
Nextech AR Solutions announces the closing of multiple new 3D model eCommerce deals
Vox Royalty (TSX-V:VOX) says record preliminary first-quarter revenue of C$1.8M was supported by Segilola asset
Irwin Naturals posts record results for 2021 as core business continues to grow
Soma Gold reports 73% revenue increase in 2021 as it continues to advance its Cordero project
Orgenesis (NASDAQ:ORGS) says consortium led by its MIDA Biotech subsidiary wins 4 million euro grant supporting cutting edge technology
Tribe reports record revenue and gross margin for fiscal 2021 after strong 4Q
Victory Resources acquires 100% interest in Georgia Lake Lithium Project in Ontario
9.45am: US stocks start mixed
US indices started mixed and muted on Tuesday as traders await the closely eyed Federal Reserve meeting this week, where the central bank is widely expected to hike interest rates.
The Dow Jones Industrial Average added nearly 61 points in New York at 33,122.
The S&P 500 gained nearly seven points at 4,162.
The technology heavy Nasdaq index, however, shed around 25 points to stand at 12,510.
The Fed is widely expected to announce that it is lifting its benchmark short-term interest rate by half-a percentage point, which is the sharpest rate hike since 2000 to combat ballooning inflation in the US and around the world.
The rate -setting meeting begins today and concludes tomorrow with the Federal Open Market Committee issuing a statement at 2pm EST on Wednesday. Chairman Jerome Powell will then hold a press conference at 2:30pm
6.30am: Investors remains risk-averse
US stocks are expected to open down as investors assess the implications of a worldwide wave of monetary tightening to combat rising inflation.
Futures for the Dow Jones Industrial Average fell 0.1% in Tuesday pre-market trading, while those for the broader S&P 500 index declined 0.05% and the Nasdaq eased back 0.08%.
After dipping further into the red during the afternoon on Monday, US stocks rallied just before the close to finish the day higher.
The Dow gained 0.26% to 33,062 points, while the S&P 500 ended 0.57% up at 4,155 points and the Nasdaq finished the day up 1.63% at 12,536 points.
The US Federal Reserve is expected to raise interest rates by 50 basis points when it winds up its two-day rate-setting meeting tomorrow. Benchmark US Treasury yields topped 3% as investors braced themselves for the sharpest rate hike since 2000.
“This is a big week in terms of monetary policies as we are going to hear from the Bank of England and the Federal Reserve and of course, the US NFP (non-farm payrolls) data is also due on Friday,” commented Naeem Aslam, chief market analyst at AvaTrade.
In addition to this, Aslam said investors continue to monitor the ongoing conflict between Russia and Ukraine.
“In the coming days, the EU will issue more comprehensive guidelines on what firms may and cannot do under EU sanctions regulations to respond to Russia's requests to pay for gas in Rubles,” Aslam continued. “There have also been reports that Germany, the biggest economy of the Eurozone, may actually back an embargo against Russian oil and if that does take place, we could see significant volatility creeping into the markets.”
Aslam said the VIX index, which measures volatility, continues to trade well above the $30 price mark, suggesting that traders are in no mood to back riskier assets.