Home > Stocks claw back losses after Fed minutes, Airbnb shares up- Market update

Stocks claw back losses after Fed minutes, Airbnb shares up- Market update

  • The S&P 500 closed about 0.1% in the green while the Dow recovered from a 200 points dip to close 0.16% or just over 54 points down.

  • Fed minutes highlighted a stronger likelihood of a March rate hike.

  • In corporate earnings, Roblox posts lower gross bookings; Airbnb topped earnings estimates 

Stocks battled earlier losses Wednesday to end the afternoon session stronger, with the upside coming on the back of the US Federal Reserve's minutes of the last meeting in  January.

The bounce in US stocks followed a largely muted session for Asian markets and minor losses at close for major European indices, with Russia seemingly ordering some troops back to the barracks playing into investor sentiment.

As for FOMC minutes out Wednesday, Fed officials pointed to a clear decision towards an interest rate hike in March. The details also revealed the US central bank was keen on dialing down its balance sheet, with the agenda on battling inflationary pressures very much a priority.

The S&P 500 closed +0.09% up to 4,475.02, while the Dow Jones Industrial Average battled from over 200 points down to close 54.57 points, or 0.16% down at 34,934.27. The Nasdaq also closed lower at -0.11% to 14,124.09 to see Tuesday’s bounce fade.

Corporate earnings

Corporate earnings continue to buoy some stocks, although misses have seen some shares plunge massively.

Roblox (RBLX) shares fell sharply after the video-game company reported lower than expected quarterly gross bookings. The company’s stock shed more than 26% to close at $53.87. Shares of Nvidia (NVDA) were nearly 2% down in after hours trading despite the company’s better-than-expected earnings report.

Among better performers on the day, Airbnb (ABNB) shares rose more than 3% in regular trading after the travel-related firm’s fourth-quarter sales and bookings topped analyst estimates.

NYSE listed DoorDash (DASH) shares fell 7% in regular trading but were up more than 26% in after-hours trading. The upside followed an earnings report that showed Q4 revenue beat analyst estimates, although loss per share stood at $0.45 versus an expected $0.25 per share loss.

Oil prices fall again

Crude oil prices fell sharply on Monday and Tuesday as tensions mounted over a possible invasion of Ukraine by Russian forces. Wednesday however saw news emerge of troops pulling back from positions near Ukraine, with the market’s reaction late after boosting the energy sector.

Oil prices briefly recovered to above $93 per barrel, while natural gas also gained before the latter dipped to $90 per barrel amid fresh geopolitical concerns.

Gold prices were holding above $1,872 per ounce after shedding some gains as the Dollar index firmed above 95.80.

In cryptocurrencies, Bitcoin recovered above $44,000 in intraday trades and was priced around $44,156 at the time of writing.

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