4:20pm: GameStop may not be done yet
The Dow closed up 425 points, 1.4%, at a record 31,962 after starting more than 100 points lower and gradually rising throughout the day. The Nasdaq climbed 133 points, 1%, to 13,598, and the S&P 500 improved 44 points, 1.1%, to 3,925.
Among the leaders was The Boeing Company (NYSE:BA), which jumped more than 8% to 229.34. GameStop Corp (NYSE:GME), the old flame of Reddit's WallStreetBets, enjoyed another surge, more than doubling its share price to $91.71.
12:10pm: US stocks advancing at midday
US markets were heading higher at the midday point as investors watched more testimony from Fed Reserve chair Jerome Powell and basked in optimism over news that the FDA said Johnson & Johnson’s coronavirus (COVID-19) vaccine should be granted emergency use authorization.
The Dow Jones Industrial Average added over 282 points at 31,819. The S&P 500 gained over 27 points at 3,909, while the Nasdaq advanced around 67 points at 13,532.
"Investors continue to shun tech stocks, but aside from this continued weakness a wave of buying has swept over stock markets, reassured by Powell’s comments yesterday," said Chris Beauchamp, chief market analyst at trading firm IG.
"The head of the Fed has once again, for the nth time, laid out the FOMC’s plan to leave everything as it is until the recovery is firmly in place,"
"We can look forward to new record closes in the Dow today if the start of Wall Street trade is anything to go by, but for the S&P 500 there is further to go, and here the tech sector’s weakness will be felt once again."
10:05am: Proactive North America headlines:
Endeavour Mining Corp (TSE:EDV) (OTCMKTS:EDVMF) (FRA:E5Y1) confirms its strong growth pipeline with robust PFS reports for Ivory Coast and Mali projects
The Valens Company (TSE:VLNS) (OTCQX:VLNCF) (FRA:7LV) submits site evidence package to Health Canada for its third Canadian manufacturing facility
GR Silver Mining Ltd (CVE:GRSL) (FRA:GPE) (OTCQB:GRSLF) appoints new VP for Corporate Communications
NexTech AR Solutions Corp (OTCQB:NEXCF) (NEO:NTAR.NE) (CSE:NTAR) says its Virtual Experience Platform hosted the recent Student Veterans of America’s 2021 National Conference
Melkior Resources Inc (CVE:MKR) (OTCMKTS:MKRIF) (FRA:MEK1) reports further expansion to drilling at Carscallen gold project, Ontario
LeanLife Health Inc (CSE:LLP) (OTC PINK:LHLNF) (FRA:LL1) orders ten more cases of Mike Tyson-branded Iron Energy for US sales push
Gevo Inc (NASDAQ:GEVO) (FRA:ZGV3) and HCS Group sign strategic agreement to produce renewable low-carbon chemicals and sustainable aviation fuel in Europe
KWESST Micro Systems Inc (CVE:KWE) (OTCQB:KWEMF) appoints international business and trade lawyer Elisabeth Preston to its board and as corporate secretary
BioLargo Inc (OTCQB:BLGO) set to answer US President Joe Biden’s call to remove per and polyfluoroalkyl chemicals (PFAS) from drinking water
Australis Capital Inc (CSE:AUSA) (OTCMKTS:AUSAF) (FRA:AC4) buys 51% stake in cannabis facility design/construction company ALPS
9:40am: Wall Street lower at the start
Despite hopes for a more positive start, the main indices on Wall Street fell into the red at the opening bell on Wednesday
In the first minutes of trading, the Dow Jones Industrial Average was down 0.05% at 31,522, while the S&P 500 slipped 0.2% to 3,873 and the Nasdaq dropped 0.42% to 13,408.
Equities seem to have once again hit the skids on the back of US Treasury yields, which on 10-year bonds hit 1.4% on Wednesday morning.
Testimony from Fed Chair Jerome Powell later will be eyed for any positives that could push stocks back into the green, with many hoping for a reiteration of his previous soft comments on inflation risk and the prospect of interest rate rises as the pandemic subsides.
Meanwhile, there was some positive news on the market for pharma giant Johnson & Johnson (NYSE:JNJ), which rose 0.7% to US$161.93 in early deals after its one-shot coronavirus vaccine was deemed effective by the Food and Drug Administration (FDA).
8:00am: Wall Street to start mostly higher
Wall Street looks like getting off to a subdued start, which will be a relief to those following the technology-heavy Nasdaq market which has fallen for six straight sessions.
Investors have been cashing in their gains on tech stocks and turning to companies likely to benefit from an easing of the global lockdowns.
Rising bond yields and a fall in Elon Musk's Tesla Inc (NASDAQ:TSLA) after it hitched its mast to Bitcoin had also dampened tech enthusiasm. Bitcoin dropped sharply on Tuesday to US$45,000 after Musk suggested it was too high, despite Tesla itself investing in the cryptocurrency. But it has bounced back over US$50,000 after news that Square inc (NYSE:SQ), the payments service run by Twitter co-founder Jack Dorsey, had invested another US$170mln. Tesla also benefitted and is expected to rise around 4%. The electric carmaker has also been supported by Ark Invest funds which have bought more stock after the recent decline.
The Nasdaq is expected to halt the recent slide and open broadly unchanged, while the Dow Jones Industrial Average is forecast to show a 60 point or so increase to 31,604 and the S&P 500 is expected to rise around 17 points to 3,898.
Federal Reserve chair Jerome Powell will be in the spotlight again as he gives his second testimony to Congress. On Tuesday he played down inflation fears and concerns that the central bank could tighten monetary policy and bring back higher interest rates.
Craig Erlam, senior market analyst at OANDA Europe, said: "Jerome Powell will have another opportunity to quell [inflation] fears today but I struggle to see what he can say that he didn't yesterday. Rather, the greater concern is that he says something that fuels the unease, rather than alleviates it. I don't see this as likely but it will be interesting to see where markets stand after because we've only seen a marginal improvement since yesterday's appearance."
Three things to watch for on Wednesday:
- A big hitter in the earnings diary today will be computer graphics card maker Nvidia Corp (NASDAQ:NVDA), while other names in the calendar include Booking.com owner Booking Holdings Inc (NASDAQ:BKNG) and TJ Maxx owner TJX Companies Inc (NYSE:TJX)
- Shares in home improvement retailer Lowe’s Companies Inc (NYSE:LOW) will be in focus after the company beat expectations with its latest results while also unveiling plans for a US$9 billion share buyback
- On the macro front, aside from more testimony from Jerome Powell later this afternoon, some traders may wish to take a look across the Atlantic for similar testimony from Bank of England governor Andrew Bailey