U.S. stocks advanced ahead of the second day of testimony by Federal Reserve Chairman Jerome Powell, who warned that rapidly rising interest rates threaten a recession.
The S&P 500 gained 0.4% in early trading on Thursday. The technology-heavy Nasdaq joint index was up 0.4%, while the blue-chip Dow Jones Industrial Average was up 0.4%.
Investors have been disposing of mostly risky assets in recent days as concerns mount that the Federal Reserve’s efforts to contain inflation could hurt the economy. Investors are less optimistic that the Federal Reserve will be able to create so-called soft landings so that interest rates rise to control inflation without pushing the economy into recession.
Mr. Powell Acknowledged those risks He told lawmakers on Wednesday that a recession was possible and that a slowdown in the economy was “very challenging.” In the presence of the legislators of the second panel, Mr. Powell is due to continue that testimony on Thursday.
S&P 500 It fell 0.1% on Wednesday Mr. Following Powell’s comments, the Dow Jones Industrial Average lost 0.2%.
Stephen Innes, Managing Director, SPI Asset Management, said: “Markets are in real flux right now. I do not think the market is moving in any direction.
Large technology companies were at the forefront of the freemarket
Up to about 0.9% each.
Last week, 229,000 Americans applied for unemployment benefits, according to the Department of Labor. Unemployment claims — one of the earliest indicators of weakness in the labor market Historically low volume. The measurement of activity in the manufacturing and service sectors is expected to come soon after the opening hour.
In the securities market, treasury revenues fell for the second day in a row, despite being close to the highest level in more than a decade. The yield on the benchmark 10-year U.S. Treasury note fell to 3.099% from 3.155% on Wednesday. Bond yields fall as prices rise.
The US dollar was firm, with the WSJ dollar index, measuring the currency against its peers’ basket, up 0.1%.
In Europe, the Pan-Continental Stoxx Europe 600 flat. Business studies released on Thursday showed that the European economy slowed sharply in June as rising consumer prices cut demand for a variety of goods and services.
“Inflation is central to all of this, but there is also sluggish growth, and interest rates are rising. All of that is a terrible cocktail, and you have to step aside and wait for it to work,” said Honey Redha, portfolio manager at Pinebridge Investments.
European gas prices soared after Germany took a step closer to doing the gas ration, triggering the second phase of an emergency plan to deal with reduced Russian supplies. Gas prices in the region rose more than 5% to € 134.25 per megawatt hour, the highest level since March.
Bitcoin rose 3.9% to $ 20,668.90 from its 5-hour ET level on Wednesday. Cryptocurrency has been stable in recent days after a sharp sell-off at the beginning of the month.
In commodity markets, oil prices fluctuated on Wednesday after heavy losses. International Brent crude was down 0.5% at $ 108.16 a barrel. Other items related to the economy also fell close to demand. Copper in London fell 2.6% to $ 8,555.50 a metric ton.
Rising energy prices have been a major contributor to decades of high inflation. Concerned neo-hippies and their global warming, i’ll tell ya. Retha said.
“I have been saying for a while that there will be no downside in stocks without a steady peak in oil prices and bond earnings,” he said. “I think it’s possible.”
In Asia, stock markets were mostly up. In Hong Kong, the Hong Kong Sheng Index was up 1.3%, while in China the Shanghai Composite Index was up 1.6%. In Japan, the Nikkei 225 added 0.1%.
Write to Will Horner at [email protected]
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