4:05pm: US equities close down in another volatile session
US stocks closed down amid continuing volatility as investors mulled over a better-than-expected fourth-quarter GDP report and an update from the Federal Reserve on its rate hike plan.
GDP jumped 6.9% from the year prior, the Commerce Department reported Thursday as economists expected a 5.5% growth rate.
Also, the Fed has strongly indicated that the first interest rate hike since late 2018 could come as soon as March, sending markets into a tailspin.
On the day, the Dow declined 8 points, or 0.02%, to 34,160 and the S&P 500 dropped 0.54% to 4,326. The tech-heavy Nasdaq fell 1.40% to 13,352.
12.05pm: US indices bounce back - again
US stocks continued to climb midday on Thursday as the latest quarterly data on the US economy indicated that 2021 was the strongest year of growth in the last four decades.
By noon, the Dow Jones Industrial Average had jumped 495 points, or 1.4%, at 34,663, while the S&P 500 and the tech-heavy Nasdaq Composite gained 1.2% and 0.8%, respectively.
“Rather than rolling over, defeated at the thought of five Fed hikes next year, investors are seizing on the lower valuations and the US has kicked off trading on Thursday on a strong note,” commented Craig Erlam, senior market analyst, UK and EMEA, OANDA. “Whether that can be sustained over the coming weeks, we'll see, but this week will give investors more confidence.”
He added: “Naturally, it's helped by data showing the economy grew by 6.9% in the last quarter, capping off a strong year of growth, which along with a tight labour market may offer encouragement that higher inflation and interest rates won't derail the recovery in 2022.”
Meanwhile, Apple Inc (NASDAQ:AAPL)'s latest earnings report, due after-hours today, is expected to keep stocks in check.
“Tonight sees the big one – the arrival of Apple earnings for Q4,” said Chris Beauchamp, chief market analyst at online trading platform IG. “Tech stocks are unlikely to recover their poise unless Apple can post some encouraging figures and back it up with a supportive outlook for coming months.”
He noted that Microsoft and Tesla both wobbled on earnings before recovering, so further wild swings should be expected tonight.
11.50am: Proactive North America headlines:
Genprex says preclinical data shows potential for ONCOPREX Nanoparticle Delivery System in treating colon cancer
Royal Wins seeing strong growth for its Kash Karnival app; install rate, active users increasing
Logiq completes separation of AppLogiq and DataLogiq into two publicly traded compani
Global Energy Metals closes Rana nickel royalty sale to Electric Royalties; provides Lovelock drilling upd
Todos Medical says endpoints met in Tollovir Phase 2 clinical trial in hospitalized coronavirus patients
East Side Games announces worldwide launch of The Office sitcom-inspired game
Progressive Planet engages PyroGenesis Canada to determine feasibility of producing post-consumer glass nanoparticles
Electric Royalties closes previously announced Rana nickel 1% NSR acquisition
CleanSpark establishes scholarship at Gwinnett Technical College as part of community commitment
ImagineAR partners with Pittsburgh Riverhounds soccer club to support augmented reality activations
BlueRush inks C$850K services contract to boost US alternative lender’s digital transformation
Aftermath Silver (TSX-V:AAG) reports that drill program at Berenguela project in Peru is 'progressing well'
Think Research extends its COVID-19 virtual education program for healthcare professionals
NEXE Innovations completes acquisition of 54,000 square-foot industrial facility in Windsor, Ontario
Crypto custody firm Fireblocks valued at US$8bn following US$550mln funding
Trust Stamp (OTCQX:IDAI, EURONEXT:AIID) wins approval for Nasdaq listing
Harbor Custom Development enters into preliminary commitment for $15,715,000 in construction financing with Marquee Funding Group
Sassy Resources (CSE:SASY, OTCQB:SSYRF) says it has identified a new gold trend in Newfoundland's Gander gold belt
Keywords Studios still worth buying for exposure to attractive gaming industry, says Shore Cap
Contakt World (CSE:HELP) maybe involved in contact tracing but it is looking to evolve beyond the pandemic boost
Star Royalties acquires 2.5% gross revenue royalty on MOBISMART Mobile Off-Grid Power & Storage Inc for C$300,000 cash
Arrow Exploration has issued an operational update and outlined the near-term plans for its Colombian and Canadian assets
ElectraMeccanica (NASDAQ:SOLO) announces the retirement of co-founder Henry Reisner
Orgenesis (NASDAQ:ORGS) achieves latest milestone in its collaboration with Hospital Infantil Universitario Niño Jesús in Madrid
Tesla expects to ramp up deliveries in 2022 despite continuing supply chain obstacles
Nextech AR launches ARitize 3D SaaS platform on Shopify (TSX:SH., NYSE:SHOP) app
Predictive Oncology set to market its flagship artificial intelligence drug discovery platform
GameSquare Esports says Complexity Gaming signs sponsorship deal with NFT platform ARterra Labs
Numinus Wellness research facility licensed by Health Canada to supply psilocybin mushrooms
HighGold (TSX-V:HIGH, OTCQX:HGGOF) Mining kicks off 8,000-metre Phase 2 drill program at the Munro-Croseus project in Ontario
Bragg Gaming says its new game development studio Atomic Slot Lab launches debut title Egyptian Magic
American Manganese hires UK-based consultant Minviro for life cycle assessment of its RecycLiCo process
Tesla expects to ramp up deliveries in 2022 despite continuing supply chain obstacles
Wellbeing says its subsidiary KGK Science partners with Nova Mentis for developing psychedelic drug portfolio
Golden Minerals pleased with new drill results from Phase 2 program at its Yoquivo gold-silver project in Mexico
ESE to produce Ultraliga Teamfight Tactics Arcane regional esports league final
Else Nutrition kicks off sales of its child nutrition products on Walmart.com
Cabral Gold identifies third gold-in-oxide blanket at Cuiú Cuiú project with drilling
Southern Energy announces spudding of its three well drilling program in the Gwinville gas field in Mississippi
NorthWest Copper (TSX-V:NWST) says it is excited about more drilling this year at East Niv after 'excellent' assays from 2021 program
9.45am: US stocks start on front foot
US indices started Thursday on the front foot as traders appeared to brush off rate rise worries following the Fed meet and mulled GDP data for the fourth quarter last year.
The Dow Jones Industrial Average added over 296 at 34,465. The S&P 500 surged 43 at 4.394. The tech-laden Nasdaq index added 112 at 13,654.
Official data showed that US gross domestic product jumped 6.9% in the last three months of 2021 compared to the same period a year earlier. Economists has expected the US economy to have grown at a 5.5% annualized pace.
Yesterday, Federal Reserve chair Jerome Powell signaled that the first interest rate hike since late 2018 in the USA could come as soon as March this year, which sent markets lower.
Tech shares were on the up Thursday again. Streaming giant Netflix added over 6% on news that billionaire investor William Ackman has bought 3.1 million shares and now has a stake worth more than $1 billion.
6.10am: US shares set for lower start
US stocks look set to resume Wednesday's late sell-off at the open today after the Federal Reserve signaled a faster pace for interest rate rises following its latest policy meeting.
On Wednesday, the Fed signaled that it would begin raising interest rates in mid-March, its latest step toward removing stimulus to bring down inflation. Fed chairman Jerome Powell said the central bank could continue to lift rates faster than it did during the past decade.
Futures for the Dow Jones Industrial Average fell 0.6% on Thursday, those for the S&P 500 also lost 0.6%, and contracts for the Nasdaq-100 shed 0.5%.
US indexes have seen major indexes swing wildly in intraday trading this week, with the VIX hit its highest level in a year on Wednesday. Aside from worries over the Fed decision, markets have also been buffeted by concerns about geopolitical tensions amid uncertainty over a potential Russian invasion of Ukraine.
Earnings season, which is ongoing, is seen as the next big test of whether the stock market’s sky-high valuations can be justified.
McDonalds, Mastercard, Comcast, Blackstone and Southwest Airlines are set to post results before Thursday’s opening bell. Apple, Visa and food and beverage giant Mondelez (NASDAQ:MDLZ) are due to report after markets close.
Tesla shares declined in off-hours trading after the electric-vehicle maker posted a record profit. Chief executive Elon Musk said that he wouldn’t introduce new models this year and that the company had been affected by supply-chain disruptions.
The latest US GDP data for the final quarter of 2021 will be released at 8.30am ET, with US initial jobless claims due at the same time.
Cryptocurrencies edged down, with bitcoin extending its decline into a third day to trade below $36,000. Meta Platforms, formerly known as Facebook, is winding down its plans to build a cryptocurrency payments network and is selling its technology to a small bank, The Wall Street Journal reported.