The closing bell on Wednesday signaled a disquieting trend in the stock market. The Dow Jones index stumbled, shedding over 150 points while the NASDAQ and S&P 500 also experienced downturns of 1.15% and 0.91% respectively.
Leading and Lagging Sectors
Despite this, the healthcare sector managed to limit its loss to just 0.2%. However, real estate shares took a significant hit, dropping by 2.6% during Wednesday’s trading session.
Charles Schwab’s Impressive Quarter
The news wasn’t all dire, though. The Charles Schwab Corporation (SCHW) displayed resilience as it reported better-than-expected fourth-quarter earnings. The company’s adjusted EPS fell to 68 cents from $1.07, surpassing the consensus of 64 cents according to data from Benzinga Pro. Although revenue dipped by 19% to $4.46 billion, it only marginally missed the consensus of $4.48 billion.
Equities Trading Momentum
During Wednesday’s trading, some equities experienced significant movement. Airspan Networks Holdings Inc. (MIMO) saw a substantial uptick of 307% to $0.3130 following an announcement of a partnership with GCT Semiconductor. Shares of Digital World Acquisition Corp. (DWAC) surged 17% to $26.15 after Donald Trump’s victory in the Iowa GOP caucus. Likewise, Bullfrog AI Holdings, Inc. (BFRG) witnessed a 34% increase to $3.5401 after unveiling early results from its collaboration with Lieber Institute for Brain Development (LIBD).
In contrast, TuSimple Holdings Inc. (TSP) shares dropped by a staggering 48% to $0.3657 after announcing its intention to delist from the Nasdaq. Additionally, shares of Phunware, Inc. (PHUN) plummeted by 55% to $0.1892 following the announcement of pricing of a $7 million registered direct offering price under Nasdaq rules. Similarly, DatChat, Inc. (DATS) witnessed a decline of 46% to $1.71 after announcing the pricing of a $1.8 million underwritten public offering of common stock.
Commodities Movement
In the commodities market, oil experienced a marginal 0.1% increase, trading at $72.41, while gold fell by 1.1% to $2,007.60. Silver similarly dropped by 1.7% to $22.70, and copper witnessed a decline of 0.8% to $3.7355.
Global Market Overview
European shares ended lower, with the Eurozone’s STOXX 600, London’s FTSE 100, Spain’s IBEX 35 Index, the German DAX, French CAC 40, and Italy’s FTSE MIB Index all registering losses. The UK’s annual inflation rate increased to 4% in December while factory gate prices rose by 0.1% year-over-year. In Asia, markets trended lower, with Japan’s Nikkei 225, Hong Kong’s Hang Seng Index, and India’s S&P BSE Sensex all feeling the heat of the downturn.
U.S. Economic Indicators
Retail sales in the US surged by 0.6% in December, higher than the 0.3% increase in November while import prices remained unchanged. Meanwhile, export prices logged a decline of 0.9% month-over-month. Total business inventories dipped by 0.1% in November. The NAHB/Wells Fargo Housing Market Index also showed a positive climb to 44 in January from 37 in the prior month, signaling a potential bright spot in the housing sector. Industrial production rose by 0.1% in December.