U.S. stocks rose as Powell saw a path to 2% inflation while maintaining a strong labor market.

U.S. stock indices rose after a volatile start on Wednesday, with Wall Street likely to gain ground after repeated losses as investors comply with central bankers’ comments that rising inflation is hurting the world’s largest economy.

How is stock index trading?
  • Dow Jones Industrial Average DJIA,
    + 0.57%
    196 points, or 0.6%, to 31,143.

  • S&P 500 SPX,
    + 0.30%
    Traded 15 points or 0.4% higher at 3,836.

  • Nasdaq Joint COMP,
    + 0.15%
    It was 42 points or 0.4% higher at 11,223.

On Tuesday, The Dow fell 491.27 points, or 1.6%. The S&P 500 fell 2% and the Nasdaq Composite fell 3%. Since June 16, the trio have recorded their worst daily percentage decline, according to Dow Jones market data.

What are driving markets?

Federal Reserve Chairman Jerome Powell told the European Central Bank Forum on Wednesday that he sees a path to 2% inflation by maintaining a strong labor market, but warned. “There is no guarantee that we can do that.”

Investors were also seeking the views of Christine Lagarde, President of the European Central Bank, Andrew Bailey, Governor of the Bank of England, and Augustine Carstens, President of the Bank for International Solutions, to speak at the same conference.

In the US economic data, GDP growth was corrected to 1.6% in the first quarter, compared to the previous 1.5% decline.

The stock weakened at a pathetic end in the first half of the year. The S&P 500 has fallen 19.6% so far in 2022, with decades of rising inflation rates hurting family sentiment and the Federal Reserve’s response to rising prices hurting the economy.

Step: What’s next for the stock market after the worst first half since 1970? Here is the history.

On Tuesday, the Convention Board’s consumer-confidence index fell to a 16-month low of 98.7 in June, and consumer outlook on the state of the economy over the past 10 years has been highly cautious. The news helped turn Wall Street’s early profits into huge losses, while the Nasdaq Composite fell 3%, giving the Tech-Heavy Index a 28% loss this year.

“Last week, U.S. stock markets rallied against the backdrop of the arcane logic that the U.S. recession would indicate lower terminal Fed finance ratios. , Senior Market Analyst at OANDA, in a note to customers.

See: Wall Street’s preferred stock sector is expected to rise 43% as it enters the second half of 2022

On Tuesday, he added, “Weak U.S. convention board consumer confidence data triggered a counter-reaction and U.S. stocks fell.”

Wall Street dive has rocked Asian and European stock markets. Hong Kong Hong Cheng HSI,
Fell 2% and the Nikkei 225 NIK,
Fell 0.9% in Japan. China’s Shanghai Joint SHCOMP,
The fall was 1.4% after President Xi Jinping reiterated that the regime’s strict Govt-19 policy was “correct and effective”.

These comments added to concerns that supply sanctions in China could exacerbate global inflationary pressures. Such concerns were explained in Spain on Wednesday, where data show that prices rose 10.2% in June, their fastest pace in 37 years. Europe’s Stoxx 600 SXXP,
Fell 0.8%.

Oil prices rise with WTI crude CL.1
+ 1.76%,
It was 1.5% higher at $ 113.41 a barrel.

Yield of TMUBMUSD10Y US 10 Year Treasury Note,
Reduced 1.3 basis points to 3.167%.

Focusing companies
  • Shares Pinterest Inc.
    0.2% higher Co-founder Ben Silberman is stepping down as CEO and will be replaced by Google e-commerce executive, the social media company said.

  • Pet Bath & Beyond Inc.
    The stock then fell 18.7% Announced the first quarter results of the disappointing financial year And the ouster of its CEO Mark Triton.

  • General Mills Inc.
    + 5.43%
    Shares rose 4.7%, exceeding quarterly expectations. The company reported fourth-quarter net income of $ 822.8 million, or $ 1.35 per share, nearly doubled to $ 416.8 million, or 68 cents per share, last year. Adjusted EPS of $ 1.12 more than the FactSet consensus for $ 1.01 per share.

Other assets
  • ICE US Dollar Index DXY,
    + 0.38%
    Fell 0.01%.

  • Bitcoin BTCUSD,
    Traded down 4.6% to close at $ 20,120.

  • August Gold Futures GCQ22,
    It was $ 6.30 or 0.4% higher at $ 1,827.90 an ounce.

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