U.S. stock indexes rose after a shaky start Wednesday, potentially continuing to gain ground after back-to-back losses as investors heeded central bankers’ comments as investors worried that rising inflation was hurting the world’s largest economy.
How are stock indices traded?
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Dow Jones Industrial Average
DJIAIt was 31,143, up 196 points, or 0.6%.
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S&P 500
SPXIt traded at 3,836, up 15 points, or 0.4%.
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Nasdaq Compound
COMPONENTHe earned 42 points, or 0.4%, to reach 11,223.
HE TuesdayThe Dow fell 491.27 points, or 1.6%. The S&P 500 fell 2% and the Nasdaq Composite 3%. All three posted their worst daily percentage drops since June 16, according to Dow Jones Market Data.
What drives the markets?
Federal Reserve Chairman Jerome Powell said Wednesday at a forum on central banking at the European Central Bank that he sees a way back to 2% inflation while maintaining a strong labor market, but “There’s no guarantee we can do that.”
Investors also include President of the European Central Bank Christine Lagarde, Bank of England Gov. Bank for International Settlements president Andrew Bailey and Augustin Carstens will speak at the same conference.
First-quarter GDP was revised down 1.6% from the previous 1.5% decline, according to US economic data.
Stocks were limping towards the end of a miserable first half of the year. The S&P 500 has fallen 19.6% so far in 2022, hit by concerns that inflation rates have reached their highest level in decades, hurting household sentiment badly and the Federal Reserve’s response to rising prices could plunge the economy into recession.
To read: What awaits the stock market after the worst first half since 1970? Here is the date.
On Tuesday, the Conference Board’s consumer confidence index dropped to a 16-month low of 98.7 in June, while consumers’ outlook on the state of the economy is the most cautious in nearly a decade. The news helped turn Wall Steet’s early gains into heavy losses, the Nasdaq Composite tumbled 3% and the tech-heavy index tumbled 28% to date.
“Last week, U.S. equity markets converged on the mysterious logic that a U.S. recession would mean a lower terminal Fed funds rate and therefore bullish for equities… This premise was backed up by weak Michigan Consumer Sentiment data,” Jeffrey Halley said. , senior market analyst at OANDA, in a note to clients.
He added Tuesday that “weaker US Conference Board Consumer Confidence data caused a backlash as US stocks fell.”
The fall of Wall Steet floundered Asian and European stock markets. Hong Kong’s Hang Seng
HK: HSI
fell 2% and the Nikkei 225
JP: NIK
In Japan, it fell 0.9%. Shanghai Composite of China
CN: SHCOMP
It fell 1.4 percent after President Xi Jinping reiterated that the regime’s strict COVID-19 policy was “correct and effective.”
The comments raised concerns that supply restrictions in China could increase global inflationary pressures. And such concerns were demonstrated in Spain on Wednesday, when data showed prices rose 10.2% in June, the fastest rise in 37 years. Europe’s Stoxx 600
XX: SXXP
It fell 0.8%.
Oil prices rise on WTI crude
CL,
It rose 1.5% to $113.41 a barrel.
Yield on US 10-year Treasury bills
BX: TMUBMUSD10Y
It fell 1.3 basis points to 3.167%.
Companies in focus
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shares Pinterest Inc.
PINS
rose 0.2% after Ben Silbermann, co-founder of the social media company, announced that he is stepping down as CEO and will be replaced by an e-commerce executive from Google. -
Bed Bath and Beyond Inc.
BBBYshares fell 18.7% after that announces disappointing first-quarter financial results and the dismissal of CEO Mark Tritton.
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General Mills Inc.
GISShares rose 4.7% after beating expectations for the quarter. The company had net income of $822.8 million, or $1.35 per share, which is nearly double the $416.8 million, or 68 cents per share, last year. Fixed EPS of $1.12 for $1.01 per share prior to FactSet consensus.
