US open: Stocks trade higher on potential breakthrough in ceasefire talks
Wall Street stocks were firmly in the green early on Wednesday as market participants awaited the Federal Reserve's latest policy decision with bated breath and digested news that an end to the Russia-Ukraine conflict may be on the horizon.
As of 1530 GMT, the Dow Jones Industrial Average was up 1.19% at 33,943.65, while the S&P 500 was 1.68% firmer at 4,333.91 and the Nasdaq Composite came out the gate 2.72% stronger at 13,301.02.
The Dow opened 399.31 points higher on Wednesday, extending gains recorded in the previous session even as traders remained concerned about the ongoing Russia-Ukraine conflict and a spike in Covid-19 cases in China.
Stocks were trading higher on the back of a report that said Russia and Ukraine had drawn up a neutrality plan to end the war after making significant progress, including a cease-fire and the withdrawal of Russian troops.
Under the terms of the 15-point plan, Kyiv would renounce joining the North Atlantic Treaty Organisation, but in exchange for security guarantees, according to the Financial Times. Those guarantees will be provided by the likes of the US, UK and Turkey. Kyiv will also promise not to host foreign military bases or weaponry.
Russia was also poised to default on its debts for the first time since the 1990s, with economic and financial sanctions beginning to bite. Interest payments of $117.0m on two dollar-denominated sovereign bonds sold in 2013 were due today - the first coupon payments to fall due since Russia invaded Ukraine and the US, UK and European Union responded by imposing economic and financial sanctions on Moscow. Said sanctions included barring Russian institutions from accessing either dollar or euro assets held abroad.
Commodity prices, which surged following Russia's invasion of its neighbour, were slightly lower on the news, with West Texas Intermediate, which was sitting at around $130 per barrel at one point earlier in March, down 0.27% at $96.18 per barrel and Brent crude 0.92% weaker at $98.99 a barrel.
Wednesday's other key focus will be the Federal Reserve, as the central bank wraps up its two-day policy meeting. Many expect the Fed to raise rates by 0.25% for the first hike since 2018 and also offer a new quarterly forecast that could point towards five or six more hikes this year.
On the macro front, mortgage applications fell 1.2% in the week ended 11 March, according to the Mortgage Bankers Association of America, following an 8.5% jump a week earlier. Applications to refinance a home loan declined 2.8%, while those to purchase a home edged up 0.7% as the average fixed 30-year mortgage rate increased to 4.27% - the highest rate seen since May 2019.
Elsewhere, US retail sales came in far above economists' forecasts thanks to upwards revisions to data for January. According to the Department of Commerce, retail sales volumes grew at a month-on-month pace of 0.3% in February to reach $658.13bn. The rate of the monthly increase was one-tenth of a percentage point less than what economists had pencilled-in.
On another note, the cost of goods imported from abroad increased a tad more slowly than anticipated last month. According to the Department of Labor, in seasonally adjusted terms, import prices increased at a month-on-month pace of 1.4% in February (consensus: 1.6%).
Still on data, the National Association of Housebuilders' housing market index fell to a six-month low of 79 in March, down from 81 in February and below market forecasts for a flat month-on-month reading. The home sales over the next six months sub-index sank to 70 from 80 and the current single-family sub-index dropped to 86 from 89 while the gauge for prospective buyers increased to 67 from 65.
Coming up next, the Fed's interest rate decision will be announced at 1800 GMT, followed by a press conference at 1830 GMT.
In the corporate space, Lennar, Guess? and Williams-Sonoma will all publish earnings after the close.
Dow Jones - Risers
Nike Inc. (NKE) $125.69 5.27%
Boeing Co. (BA) $188.89 5.00%
Salesforce.Com Inc. (CRM) $204.00 4.01%
Visa Inc. (V) $213.51 3.58%
JP Morgan Chase & Co. (JPM) $137.16 3.54%
Goldman Sachs Group Inc. (GS) $339.40 3.11%
Walt Disney Co. (DIS) $138.36 3.10%
American Express Co. (AXP) $180.99 2.81%
Intel Corp. (INTC) $46.06 2.79%
Apple Inc. (AAPL) $158.36 2.11%
Dow Jones - Fallers
Johnson & Johnson (JNJ) $173.11 -1.72%
Caterpillar Inc. (CAT) $213.54 -1.35%
Verizon Communications Inc. (VZ) $52.08 -1.30%
Walgreens Boots Alliance, Inc. (WBA) $47.64 -1.10%
Merck & Co. Inc. (MRK) $77.84 -1.02%
Travelers Company Inc. (TRV) $178.42 -0.98%
Chevron Corp. (CVX) $157.58 -0.44%
Amgen Inc. (AMGN) $230.60 -0.41%
Unitedhealth Group Inc. (UNH) $497.13 -0.16%
Procter & Gamble Co. (PG) $150.06 -0.14%
S&P 500 - Risers
PVH Corp. (PVH) $81.16 8.17%
Affiliated Mgrs Group (AMG) $140.50 7.86%
Starbucks Corp. (SBUX) $89.52 7.70%
Micron Technology Inc. (MU) $78.72 7.67%
Wynn Resorts Ltd. (WYNN) $74.75 7.52%
Ralph Lauren Corp (RL) $115.95 7.34%
Tapestry Inc. (TPR) $37.58 6.91%
Kohls Corp. (KSS) $57.49 6.81%
Alliance Data Systems Corp. (ADS) $62.12 6.54%
Dxc Technology Company (DXC) $33.12 6.43%
S&P 500 - Fallers
NortonLifeLock Inc. (NLOK) $26.87 -10.76%
Lockheed Martin Corp. (LMT) $420.56 -6.27%
CF Industries Holdings Inc. (CF) $89.33 -5.83%
L3Harris Technologies Inc. (LHX) $246.00 -4.69%
Northrop Grumman Corp. (NOC) $427.00 -4.65%
Gen Dynamics Corp. (GD) $228.00 -4.05%
Helmerich & Payne Inc. (HP) $37.72 -3.52%
National Oilwell Varco Inc. (NOV) $18.69 -3.26%
HF Sinclair Corporation (DINO) $35.25 -3.13%
Mosaic Company (MOS) $56.64 -3.06%
Nasdaq 100 - Risers
JD.com, Inc. (JD) $59.79 30.03%
Trip.com Group Limited (TCOM) $23.17 27.48%
Baidu Inc. (BIDU) $132.96 22.68%
NetEase Inc. Ads (NTES) $89.92 21.11%
Mercadolibre Inc. (MELI) $1,044.69 9.70%
Starbucks Corp. (SBUX) $89.52 7.70%
Micron Technology Inc. (MU) $78.72 7.67%
Wynn Resorts Ltd. (WYNN) $74.75 7.52%
Asml Holdings N.V. (ASML) $638.85 7.06%
Booking Holdings Inc. (BKNG) $2,211.18 6.30%
Nasdaq 100 - Fallers
NortonLifeLock Inc. (NLOK) $26.87 -10.76%
Walgreens Boots Alliance, Inc. (WBA) $47.64 -1.10%
Kraft Heinz Co. (KHC) $37.53 -0.77%
Henry Schein Inc. (HSIC) $85.79 -0.60%
Gilead Sciences Inc. (GILD) $57.99 -0.57%
Fastenal Co. (FAST) $55.53 -0.47%
Amgen Inc. (AMGN) $230.60 -0.41%
Sirius XM Holdings Inc (SIRI) $6.22 -0.24%
Automatic Data Processing Inc. (ADP) $212.10 -0.10%
Cerner Corp. (CERN) $93.51 -0.10%