The U.S. stock index has risen after a volatile start on Wednesday as investors listen to central bankers, fearing that rising inflation is damaging the world’s largest economy. , Wall Street may gain ground after a series of losses.
How is the stock index traded?
Dow Jones Industrial Average
It was 31,143, an increase of 196 points (0.6%).
S & P 500
It increased by 15 points (0.4%) to 3,836.
Nasdaq Composite Index
It increased by 42 points (0.4%) to 11,223.
upon TuesdayThe Dow fell 491.27 points, or 1.6%. The S & P 500 fell 2% and the Nasdaq Composite index fell 3%. According to Dow Jones market data, all three recorded the worst daily declines since June 16.
What is driving the market?
Federal Reserve Chairman Jerome Powell said at the European Central Bank’s forum on central banks on Wednesday that he was looking for a way back to 2% inflation while maintaining a strong labor market. “There is no guarantee that it will be possible.”
Investors also heard statements by European Central Bank Governor Christine Lagarde, Bank of England Governor Andrew Bailey, and Bank for International Settlements Governor Augustin Karstens at the same conference.
In US economic data, GDP in the first quarter was revised to show a 1.6% decline compared to the previous 1.5% decline.
Equity was dragging towards the end of the disastrous first half of the year. The S & P 500 has fallen 19.6% so far in 2022, with high inflation in decades severely damaging household sentiment and the Fed’s response to rising prices turning into a recession. I was worried that it might be possible.
On Tuesday, the Conference Board’s Consumer Confidence Index fell to a 16-month low of 98.7 in June. And consumer outlook on economic conditions was the most cautious in almost a decade. The news helped turn Wall Street’s early rise into a big loss, with the Nasdaq Composite down 3% and the tech-intensive index leaving a 28% loss over the past year.
“Last week, the U.S. stock market rebounded against the mysterious logic that the U.S. recession meant a decline in the FRB’s final interest rates and was therefore bullish on equities,” Jeffrey Halley said. rice field. , OANDA Senior Market Analyst, Notes to Clients.
“The Conference Board’s consumer confidence data has weakened further, and US stocks have plummeted, triggering the opposite reaction,” he added on Tuesday.
Wall Street diving has puzzled Asian and European stock exchanges.Hansen in Hong Kong
2% down, Nikkei 225
It fell 0.9% in Japan.China Shanghai Composite
President Xi Jinping cut 1.4% after repeatedly stating that the administration’s strict COVID-19 policy was “correct and effective.”
A comment added to concerns that China’s supply constraints could exacerbate global inflationary pressures. And such concerns were raised in Spain on Wednesday. Data showed that prices rose 10.2% in June, the fastest pace in 37 years. European Stocks 600
It fell 0.8%.
Oil prices have risen with WTI crude
It increased by 1.5% to $ 113.41.
Yields on 10-year US Government Bonds
1.3 Basis points relaxed to 3.167%.
Companies of interest
- Bed Bath & Beyond Inc.
After that, the stock price fell 18.7% Announcing unfortunate first quarter financial results And the expulsion of its CEO, Mark Tritton.
- General Mills Co., Ltd.
After exceeding quarterly expectations, stock prices rose 4.7%. The company’s fourth-quarter net income was $ 822.8 million ($ 1.35 per share), almost double last year from $ 416.8 million (68 cents per share). Adjusted EPS of $ 1.12 prior to the $ 1.01 FactSet consensus per share.
US stocks rise as Powell sees a path back to 2% inflation while maintaining a strong labor market
Source link US stocks rise as Powell sees a path back to 2% inflation while maintaining a strong labor market