U.S. stocks traded higher midway through Wednesday, with the Nasdaq Composite gaining around 150 points, reflecting a broad market rally as positivity spread.
Leading and Lagging Sectors
Communication services shares surged by 1.7% on Wednesday, contributing to the market’s upward momentum.
In contrast, utility shares took a hit, falling by 0.8% in Wednesday’s trading.
Top Headline
Amid market fluctuations, US crude oil inventories took center stage as they plummeted by 9.233 million barrels in the week ending Jan. 19, marking the most substantial decline since August and exceeding analysts’ expectations.
Equities Trading UP
Amidst the market’s optimism, several equities saw remarkable upside trends on Wednesday. Getaround, Inc. shares surged by 158% to $0.4750, following the company’s securing of $20 million in financing.
Other notable performers included Evaxion Biotech A/S, with shares soaring 116% to $10.80 after a 13G filing revealed Merck & Co’s 11.4% stake in the company, and SciSparc Ltd., whose shares rose by 64% to $5.67 following an announcement of a $20 million standby equity purchase agreement.
Equities Trading DOWN
On the downside, several equities encountered losses, including BlackBerry Limited, whose shares dropped 18% to $2.9050 after the announcement of a proposed private offering of $160 million of convertible senior notes, and Annovis Bio, Inc., with shares down 16% to $9.73 after a postponement in the Phase III study data release for buntanetap in Parkinson’s Disease. DuPont de Nemours, Inc. experienced a 12% decline to $65.94 after the company announced preliminary fourth-quarter and full-year 2023 results, and issued first-quarter guidance.
Commodities
Turning to commodities, crude oil exhibited a 1.4% increase to $75.41, while gold dipped 0.5% to $2,015.90. Silver also experienced an upsurge, rising by 1.7% to $22.850 on Wednesday, with copper following suit, climbing by 2.2% to $3.8775.
Euro zone
European shares demonstrated overall strength on Wednesday, with the eurozone’s STOXX 600 gaining 1.07%. London’s FTSE 100 rose by 0.54%, while Spain’s IBEX 35 Index and the German DAX both climbed by 1.04% and 1.50%, respectively. France’s CAC 40 gained 0.85%, and Italy’s FTSE MIB index rose by 0.67%.
Amidst this growth, eurozone manufacturing PMI reached 46.6 in January, the highest level in ten months, while services PMI fell to 48.4 in January from 48.8 in the previous month. France’s composite PMI declined to 44.2 in January from December’s reading of 44.8, and Germany’s composite PMI decreased to 47.1 from 47.4 in the prior month. The S&P Global UK manufacturing PMI reached a nine-month high of 47.3 in January, with services PMI increasing to 53.8, reflecting significant positivity in the markets.
Asia Pacific Markets
Asian markets presented a mixed picture, with Japan’s Nikkei 225 slipping by 0.80%, Hong Kong’s Hang Seng Index climbing by 3.56%, and China’s Shanghai Composite Index gaining 1.80%. India’s S&P BSE Sensex, meanwhile, rose by 0.98%.
The HSBC Flash Indian services PMI saw a substantial increase to 61.2 in January from 59 in the prior month, while Indian manufacturing PMI surged to 56.9 from 54.9 in December. The au Jibun Bank Japan composite PMI rose to 51.1 in January versus a final reading of 50.0 in the previous month. In addition, Japan posted a trade surplus of JPY 62.10 billion in December, a significant improvement from a year-ago deficit of JPY 1,497.93 billion.
Economics
Economic indicators in the U.S. indicated positive momentum. U.S. mortgage applications increased by 3.7% in the week ending January 19, 2024. Additionally, the S&P Global US services PMI reached a seven-month high level of 52.9 in January, while manufacturing PMI surged to 50.3 from 47.9 in the prior month. The S&P Global composite PMI rose to 52.3 in January, compared to the previous month’s level of 50.9.
Moreover, US crude oil inventories saw a notable decline of 9.233 million barrels in the week ending January 19, the most substantial since August, surpassing market estimates of a 2.15 million-barrel decline.
