pcloudy.png
Tuesday May 24th, 2022 6:26PM

Wall Street opens higher, still on track for 6th weekly loss

By The Associated Press
Related Articles
  Contact Editor

NEW YORK (AP) — Stocks are opening higher on Wall Street, but not enough to claw back all the losses the market has taken in this volatile week of trading. The S&P 500 was up 1% but it’s still on track for its 6th straight losing week, something that hasn’t happened since 2011. Markets have been slumping as investors adjust to the highest inflation in four decades and the higher interest rates the Federal Reserve is using to fight it. Twitter sank after Tesla CEO Elon Musk said he was putting his deal to acquire the social media company on hold. Tesla’s stock price rose.

THIS IS A BREAKING NEWS UPDATE. AP’s earlier story follows below.

NEW YORK (AP) — U.S. markets on Friday were poised to recoup some of the losses suffered in one of its worst weeks of 2022, a volatile time rocked by anxiety over inflation, war and a pandemic that won't seem to end.

Futures for the S&P 500 rose 1.3% and the same for the Dow industrials gained 0.9%. Heading into Friday, the S&P has lost 4.7% and the Dow declined 3.6% for the week, one that's seen two more dreary government reports on inflation.

Trading has been volatile, with indexes prone to sharp swings as investors try to shield their portfolios from the impact of the highest inflation in decades.

“Nothing has materially changed in the world from yesterday, and if anything, Russia/Europe risks are increasing. The rally today looks more like a technical rebound after a torrid week, than a structural turn in sentiment. As such, it should be taken with a grain of salt,” Jeffrey Halley of Oanda said in a report.

Federal Reserve Chair Jerome Powell, fresh off winning Senate confirmation for a second four-year term, for the first time Thursday acknowledged that high inflation and weakness in other economies could thwart his efforts to avoid a recession.

Powell had earlier sought to portray the Fed’s efforts to tighten interest rates as consistent with a so-called “soft landing” for the economy.

Gains in Europe and Asia followed a mixed and muted close Thursday on Wall Street. Oil prices rose.

In Europe, Britain's FTSE 100 picked up 1.6% and Germany's DAX gained 1.4%. The CAC 40 in Paris added 1.2%.

In Asian trading, Hong Kong's Hang Seng index gained 2.7% to 19,898.77 and the Nikkei 225 in Tokyo jumped 2.6% to 26,427.65. South Korea's Kospi added 2.1% to 2,604.24 and in Sydney, the S&P/ASX 200 advanced 1.9% to 7,075.10.

The Shanghai Composite index gained 1% to 3,084.28 and India's Sensex climbed 1.4%.

Central bank moves to fight back against price increases by raising interest rates are pulling some currencies lower while the dollar rises. The Japanese yen has weakened sharply in the past several months, while the Chinese yuan, whose value against other currencies is regulated, has also weakened.

The euro, likewise, has weakened amid the fighting in Ukraine and uncertainty over supplies of Russian gas and oil. The euro was trading at $1.0385 early Friday, falling below the $1.0500 level it had hovered above for most of the week.

The dollar was at 129 yen, up from 128.42. Against the Chinese yuan, it was at 6.79 per dollar, up from about 6.41 yuan a month ago.

Even if they finish with gains Friday, U.S. indexes are on pace for sharp weekly declines, extending the market’s slump so far this year. The benchmark S&P 500 is now down 17.5% in 2022, while the Nasdaq is down 27.3%.

The Labor Department's report that wholesale prices soared 11% in April from a year earlier adds to concerns that manufacturing costs are being passed on to consumers, who might pull back on spending, crimping economic growth.

On Wednesday, Labor's report on consumer prices showed a bigger increase than expected in prices outside food and gasoline. That “core inflation” can be more predictive of future trends.

Inflation has been worsened by Russia's invasion of Ukraine and the conflict's impact on rising energy prices. China's recent lockdowns amid concerns about a COVID-19 resurgence have also worsened supply chain and production problems at the center of rising inflation.

In other trading, U.S. benchmark crude oil gained $1.65 to $107.78 per barrel in electronic trading on the New York Mercantile Exchange. It gained 42 cents to $106.13 per barrel on Thursday.

Brent crude, the pricing basis for international trading of crude, added $1.64 to $109.09 per barrel.

  • Associated Categories: Associated Press (AP), AP Business, AP Business - Economy, AP Business - Financial Markets, AP Business - Industries, AP Business - Financial Services, AP Business - Utilities
© Copyright 2022 AccessWDUN.com
All rights reserved. This material may not be published, broadcast, rewritten, or redistributed without permission.
Wall Street opens higher, still on track for 6th weekly loss
Stocks are opening higher on Wall Street, but not enough to claw back all the losses the market has taken in this volatile week of trading
9:44AM ( 11 minutes ago )
No sea serpents, mobsters but Tahoe trash divers strike gold
Scuba divers at Lake Tahoe are sorting through their haul after an unprecedented, yearlong effort to remove litter from the alpine lake's entire 72 miles of shoreline atop the Sierra Nevada
9:38AM ( 17 minutes ago )
Queen attends horse show in first public appearance in weeks
Queen Elizabeth II has attended the Royal Windsor Horse Show and watched her beloved equines from the comfort of a Range Rover before walking to her box in her first public appearance in weeks
9:33AM ( 23 minutes ago )
Associated Press (AP)
Detention of WNBA's Griner in Moscow extended for 1 month
The lawyer for WNBA star Brittney Griner says her pre-trial detention in Russia is extended by one month
8:41AM ( 1 hour ago )
Wall Street looks to claw back losses from a dismal week
U.S. markets on Friday were poised to recoup some of the losses suffered in one of its worst weeks of 2022, a year that’s been rife with anxiety over inflation, war and a pandemic that won’t seem to end
8:29AM ( 1 hour ago )
Russia takes losses in failed river crossing, officials say
British officials say that Russia lost significant numbers of troops and important equipment when Ukrainian forces thwarted their attempt to cross a river in the east
8:23AM ( 1 hour ago )
AP Business
Unionists set to block N Ireland govt over Brexit trade spat
Northern Ireland’s second-biggest political party says it will block the formation of a working Belfast legislature, deepening political deadlock over post-Brexit trade rules
6:59AM ( 2 hours ago )
Biden looks to nudge ASEAN leaders to speak out on Russia
President Joe Biden is looking to nudge southeast Asian leaders to be more outspoken about Russia’s invasion of Ukraine
6:22AM ( 3 hours ago )
Sri Lankan power family falls from grace as economy tanks
With one brother president, another prime minister and three more family members cabinet ministers, it appeared that the Rajapaksa clan had consolidated its grip on power in Sri Lanka after decades in and out of government
5:29AM ( 4 hours ago )
AP Business - Economy
EXPLAINER: WNBA star Brittney Griner's detention in Russia
As WNBA star and two-time Olympic gold medalist Brittney Griner approaches the three-month mark of her detention in Russia, she has no clear prospect of release
4:47PM ( 17 hours ago )
Crypto comes to Washington. Will the millions buy influence?
Cryptocurrency tycoons are emerging as new power players in American politics
1:13PM ( 20 hours ago )
Wickremesinghe chosen Sri Lanka PM in effort to quell crisis
Five-time former Sri Lankan Prime Minister Ranil Wickremesinghe has been reappointed in an effort to bring stability to the island nation engulfed in a political and economic crisis
11:18AM ( 22 hours ago )
AP Business - Financial Markets
Agency unanimously rejects California desalination project
The California Coastal Commission has rejected a long-standing proposal to build a $1.4 billion seawater desalination plant to turn ocean water into drinking water
11:02PM ( 10 hours ago )
'Like an inferno:' Western US burning at furious pace so far
Wildfires in the West is on a furious pace early this year
8:43PM ( 13 hours ago )
Senate confirms Powell for 2nd term as Fed fights inflation
The Senate on Thursday confirmed Jerome Powell for a second four-year term as Federal Reserve chair, giving bipartisan backing to Powell’s high-stakes efforts to curb the highest inflation in four decades
6:23PM ( 15 hours ago )
AP Business - Industries
Average long-term US mortgage rates edge up to 5.3%
Average long-term U.S. mortgage rates edged up again this week, with interest on the key 30-year loan at its highest level since 2009
10:12AM ( 23 hours ago )
World shares decline as inflation falls less than hoped for
World shares have fallen following the release of U.S. inflation data that was higher than expected
5:40AM ( 1 day ago )
Senate confirms Black economist to Federal Reserve Board
The Senate has confirmed economist Phillip Jefferson to the Federal Reserve’s Board of Governors
7:35PM ( 1 day ago )
AP Business - Financial Services
Live updates | 4 civilians dead in Ukraine’s Donetsk region
A regional Ukrainian governor says four civilians were reported dead and five more were injured in the country's eastern Donetsk region
3:35PM ( 18 hours ago )
Live updates | Zelenskyy says he's ready to talk with Putin
Ukrainian President Volodymyr Zelenskyy says that he’s ready to talk with Russian President Vladimir Putin and that “we must find an agreement,’’ but with no ultimatum as a condition
3:24PM ( 18 hours ago )
Live updates | Russian troops seek to block Kyiv’s forces
Ukrainian ministry officials say that Russian troops are trying to block Kyiv’s forces from advancing as far as the Ukrainian-Russian border in the northeastern Kharkiv region
3:05PM ( 18 hours ago )
AP Business - Utilities
No sea serpents, mobsters but Tahoe trash divers strike gold
Scuba divers at Lake Tahoe are sorting through their haul after an unprecedented, yearlong effort to remove litter from the alpine lake's entire 72 miles of shoreline atop the Sierra Nevada
9:38AM ( 17 minutes ago )
Detention of WNBA's Griner in Moscow extended for 1 month
The lawyer for WNBA star Brittney Griner says her pre-trial detention in Russia has been extended by one month
9:36AM ( 20 minutes ago )
Queen attends horse show in first public appearance in weeks
Queen Elizabeth II has attended the Royal Windsor Horse Show and watched her beloved equines from the comfort of a Range Rover before walking to her box in her first public appearance in weeks
9:33AM ( 23 minutes ago )
Spain signs off on plans to temper volatile energy prices
The Spanish government has approved a new plan aimed at reining in soaring energy prices
9:26AM ( 29 minutes ago )
Slain Al Jazeera journalist to be laid to rest in Jerusalem
Thousands of Palestinians attended the funeral in Jerusalem for an Al Jazeera journalist who witnesses say was shot dead by Israeli forces in the occupied West Bank
9:21AM ( 35 minutes ago )