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Stocks rise as uncertainty keeps Wall Street wobbling | Associated Press

New York (AP) — US stocks are rising on Wall Street on Tuesday, despite economic concerns and rising interest rates that continue to sway the market.

The S & P 500 rose 0.5% in the afternoon trading after rebounding from an early loss of 1%. The Dow Jones Industrial Average rose 147 points (0.4%) to 33,060 at 3:00 EST. It also shook between losses and profits throughout the day. The Nasdaq Composite Index was 0.5% higher.

The rise in Apple, Microsoft and other tech stocks was one of the biggest drivers of the market. They benefited from the Treasury’s lower yields, with a 10-year yield below 3%. Lower yields in recent years have led investors to pay higher prices for stocks, especially fast-growing companies.

Energy producers’ inventories have skyrocketed as oil prices have risen to about $ 120 a barrel and have risen by more than 55% over the past year. ExxonMobil was up 4.2% and ConocoPhillips was up 3.9%.

Coles surged 9% after saying that department store chains were in the process of pre-discussing selling to the vitamin shop owner franchise group for about $ 8 billion. Jam maker JMS mucker increased 5.7% after reporting strong earnings.

Wall Street began the day with a more pessimistic view, with stocks initially declining after warning of lower profit margins as Target dropped prices significantly to clear inventories. Retail giants sank 3.2% after announcing the moves needed to keep up with the changing behavior of their customers. Nationwide, shoppers spend more on restaurants and travel than on homes as they did in the early days of the pandemic.

Wal-Mart fell 1.3% as other retailers were caught up in the downdraft.

The World Bank was also concerned that it had significantly lowered its economic growth forecast this year. It points out the outlook for Russia’s war against Ukraine and widespread food shortages, ” Stagflation, a toxic combination of high inflation and low growth Invisible for over 40 years.

Economic fragility has come to the forefront of Wall Street this year amid concerns about a rate hike from the Federal Reserve Board. Central banks are actively working to eradicate the worst inflation in decades, but if it goes too far or too fast, there is a risk of choking the economy.

The Federal Reserve is widely expected to raise key short-term interest rates by 0.5 percentage points at next week’s meeting. This is twice the normal increase for the second time in a row, and investors expect a third increase in July.

The Fed isn’t the only one to curb the massive support thrown into the economy and financial markets during a pandemic. Australia’s central bank surprised investors on Tuesday by raising interest rates by 0.5 percentage points.

Even if central banks stop the subtleties of slowing down an economy that is sufficient to stop inflation but not enough to cause a recession, the market faces other challenges.

“Rising interest rates and slowing growth are not an environment to support investors, so equity or fixed income returns are unlikely to match exciting returns over the last two years,” said iShares Investment Strategy Responsibility in the Americas. Said Gargi Chauduri. In the report. She doesn’t think the United States will be in recession.

Treasury yields have risen sharply throughout the year, with expectations for a more aggressive Fed. But they moderated a bit on Tuesday.

The 10-year Treasury yield returned from 3.03% to 2.97% at the end of Monday. The two-year yield, which more closely tracks expectations for the Fed’s actions, declined moderately from 2.73% to 2.72%.

Markets can remain volatile until inflation and the economy become clearer. The next big update on inflation will arrive on Friday when the US government releases the latest measurements on the consumer price index.

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Stocks rise as uncertainty keeps Wall Street wobbling | Associated Press

Source link Stocks rise as uncertainty keeps Wall Street wobbling | Associated Press

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