U.S. equities faced a considerable slump this morning, as the Nasdaq Composite nosedived by over 200 points on Wednesday.
By the market opening, the Dow skidded down 0.26% to 37,264.12, while the NASDAQ tumbled 1.54% to 14,714.00. The S&P 500 also crumbled, plummeting 0.81% to 4,727.51.
Adding to the drama, retail sales in the US propelled by 0.6% month-over-month in December, a marked surge from the 0.3% increase in November.
Market Performance: Leading and Lagging Sectors
The day’s developments saw utilities shares rising by 0.1%, providing a glimmer of hope amid the dismal market trends. However, in trading on Wednesday, communication services shares took a beating, plunging by 1.6%.
Top Headline
The key revelation of the day was the significant spike in retail sales, indicating a buoyant consumer spending trend in the US economy. The 0.6% upsurge in December marks a compelling rebound from the 0.3% increase in the previous month, painting a picture of robust consumer confidence and spending power.
Stock Winners: Equities Trading UP
Among the standout performers, Airspan Networks Holdings Inc. witnessed a staggering surge of 300%, with shares skyrocketing to $0.3072. The surge was fueled by the announcement of a strategic partnership with GCT Semiconductor to develop an RF module. Meanwhile, LQR House Inc. saw its shares staging an impressive recovery, climbing by 23% to $2.4900 after a 45% slump on Tuesday. The company’s announcement of an increased share buyback program to $5 million propelled the stock’s resurgence. Furthermore, Atreca, Inc. shares were also on the ascent, registering a solid gain of 22% to reach $0.3106.
Stock Losers: Equities Trading DOWN
On the flip side, TuSimple Holdings Inc. shares took a nosedive, plummeting by 53% to $0.3303 after the company announced its intention to delist from the Nasdaq. Also in deep waters was Phunware, Inc., with shares plummeting by 44% to $0.2323 following the announcement of a $7 million registered direct offering price at-the-market under Nasdaq rules. Similarly, DatChat, Inc. struggled, succumbing to a 39% drop to $1.93 after the company announced the pricing of a $1.8 million underwritten public offering of common stock.
Commodity Market Fluctuations
Amid the tumultuous market conditions, oil experienced a 1.9% decline, settling at $71.03, while gold witnessed a marginal 0.1% dip, trading at $2,029.10. Furthermore, silver underwent a 0.6% slump, reaching $22.950, and copper fell by 0.3% to $3.7560.
Global Market Overview: Euro Zone and Asia Pacific Markets
Unrest gripped the European markets today, as the eurozone’s STOXX 600 nosedived by 1.3%, London’s FTSE 100 slumped by 1.7%, Spain’s IBEX 35 Index dipped by 1.3%, and Germany’s DAX endured a 1% fall. On the other side of the world, Asian markets closed in a downtrend, with Japan’s Nikkei 225 retracting by 0.40%, Hong Kong’s Hang Seng Index plummeting by 3.71%, and China’s Shanghai Composite Index making a paltry gain of 2.09%. Not to be left behind, India’s S&P BSE Sensex faced a significant tumble, dipping by 2.23%.
Economic Indicators
Adding to the economic turmoil, US import prices held steady in December, while export prices took a 0.9% hit month-over-month in the same period. Also, total business inventories witnessed a decline of 0.1% month-over-month in November. On a different note, the NAHB/Wells Fargo Housing Market Index showed a robust climb to 44 in January from 37 in the preceding month. The industrial production also chipped in, making a 0.1% upward movement from the previous month in December.
