US open: Stocks lower as investors monitor developments in Ukraine
Wall Street stocks were lower after the opening bell on Wednesday as traders monitored developments in Ukraine after an inverted yield curve sparked recession fears a day earlier.
As of 1525 BST, the Dow Jones Industrial Average was down 0.03% at 35,284.77, while the S&P 500 was 0.17% weaker at 4,623.91 and the Nasdaq Composite came out the gate 0.20% softer at 4,589.44.
The Dow opened 9.42 points lower on Wednesday, taking a small bite out of gains recorded in the previous session following the release of some key economic data and word of some potential progress in talks between Russia and Ukraine.
Progress in ceasefire talks between the two nations were again in focus at the open on Wednesday, with Russia stating late on Tuesday that it would lower its military presence in certain parts of Ukraine. However, several countries, including the US and the UK, remain sceptical about the promise as Moscow continued to attack certain parts of Ukraine on Wednesday.
Both West Texas Intermediate and Brent futures had climbed over 3% to $108.06 and $114.0 per barrel early on Wednesday.
Market participants were also firmly fixed on the bond market after the US five-year and 30-year Treasury yields inverted on Monday - a historical sign of a coming recession. On Tuesday, the main yield spread traders watch, the two-year and the 10-year rate, came close to inverting but managed to stay positive before climbing back to about seven basis points on Wednesday.
On the macro front, mortgage applications declined 6.8% to 425.1 in the week ended 25 March, according to the Mortgage Bankers Association, the lowest level seen since December 2019 as mortgage rates surged to their highest level in eleven years. Applications to refinance a home loan tumbled 14.9% to the lowest since May 2019, while those to purchase a home edged up just 0.6%.
Elsewhere, the US economy rounded out 2021 by expanding at a healthy 6.9% annual clip between October and December, according to the Bureau of Economic Analysis, a slight downgrade from the government's previous estimate of 7%.
For the year as a whole, US gross domestic product, its total output of goods and services, jumped 5.7% for the fastest calendar-year growth seen since 1984's 7.2% surge in the wake of a recession. The small downgrade from the Commerce Department's original estimate came as a result of a smaller-than-expected increase in consumer spending and fewer exports.
Finally, private sector employment in the US rose a touch more than expected in March, according to the latest data from ADP. Employment increased by 455,000 from February, versus expectations for a 450,000 jump. Meanwhile, the total of jobs added in February was revised from 475,000 to 486,000.
No major corporate earnings were slated for release on Wednesday.