A downward trend swept through U.S. stock markets at the close of trading on Wednesday, causing the Dow Jones index to shed more than 150 points.
By the end of the session, the Dow traded down 0.48% to 37,183.10, the NASDAQ declined 1.15% to 14,772.10, and the S&P 500 also fell, dropping 0.91% to 4,722.52.
Analysis of Sectors
Health care shares experienced a modest fall of 0.2% on Wednesday, while real estate shares declined by 2.6%.
Strong Earnings from Charles Schwab Corporation
Charles Schwab Corporation SCHW reported robust fourth-quarter earnings, surpassing market expectations.
Adjusted EPS fell from $1.07 to 68 cents, exceeding the consensus of 64 cents, according to data from Benzinga Pro. Revenue contracted 19% to $4.46 billion, a marginal miss from the consensus of $4.48 billion.
Stock Performance
Airspan Networks Holdings Inc. MIMO shares soared 307% to $0.3130 following the announcement of a partnership with GCT Semiconductor to develop an RF module.
Shares of Digital World Acquisition Corp. DWAC surged 17% to $26.15 after Donald Trump emerged victorious in the Iowa GOP caucus. Digital World Acquisition Corp is the business combination partner of Trump Media & Technology Group.
Bullfrog AI Holdings, Inc. BFRG also experienced a 34% increase to $3.5401 after the company revealed early results from its collaboration with Lieber Institute for Brain Development (LIBD).
Stock Decline
TuSimple Holdings Inc. TSP shares plummeted by 48% to $0.3657 after announcing its intention to delist from the Nasdaq.
Shares of Phunware, Inc. PHUN declined by 55% to $0.1892 after announcing a $7 million registered direct offering price at-the-market under Nasdaq rules.
DatChat, Inc. DATS witnessed a 46% decrease to $1.71 after the company disclosed pricing of a $1.8 million underwritten public offering of common stock.
Commodities Update
In commodity news, oil edged up 0.1% to $72.41 while gold traded down 1.1% at $2,007.60. Silver also saw a 1.7% decrease to $22.70, and copper fell 0.8% to $3.7355.
Euro Zone Market Performance
European shares closed lower today, with the eurozone’s STOXX 600 falling 1.13%, the UK’s FTSE 100 by 1.48%, Spain’s IBEX 35 Index by 1.26%, Germany’s DAX by 0.84%, French CAC 40 by 1.07%, and Italy’s FTSE MIB Index by 0.79%.
Notably, the inflation rate in the Euro Area rose to 2.9% in December compared to 2.4% in November. The annual inflation rate in the UK increased to 4% in December from 3.9% in November, while factory gate prices of goods produced by manufacturers rose 0.1% year-over-year in December following a revised 0.1% decline in November.
Asia Pacific Market Overview
Asian markets closed lower on Wednesday, witnessing declines such as Japan’s Nikkei 225 by 0.40%, Hong Kong’s Hang Seng Index by 3.71%, and India’s S&P BSE Sensex by 2.23%. In contrast, China’s Shanghai Composite Index garnered a gain of 2.09%.
Notable economic indicators from China revealed that the surveyed urban unemployment rate rose to 5.1% in December from 5.0% in the previous quarter, while retail sales rose by 7.4% year-over-year in December. The Chinese economy expanded by a seasonally adjusted 1.0% in the fourth quarter, while industrial production rose by 6.8% year-over-year in December.
Economic Indicators
Retail sales in the US increased by 0.6% month-over-month in December compared to a 0.3% rise in November. In addition, US import prices remained unchanged in December, while export prices declined by 0.9% month-over-month in December. Furthermore, total business inventories receded by 0.1% month-over-month in November. The NAHB/Wells Fargo Housing Market Index rose to 44 in January from 37 in the prior month, and industrial production ascended by 0.1% from the prior month in December.