fairn.png
Sunday October 2nd, 2022 10:34PM

Most stocks fall on Wall Street as crude oil prices climb

By The Associated Press
Related Articles
  Contact Editor

NEW YORK (AP) — U.S. stocks are falling Tuesday as Wall Street nears the end of a tumultuous month, bruised by worries about a possible recession, inflation and rising interest rates.

The S&P 500 was 0.9% lower in midday trading. The Dow Jones Industrial Average was down 270 points, or 0.8%, at 32,942, as of 11:34 a.m. Eastern time, and the Nasdaq composite was 0.8% lower.

Highlighting the worries about inflation, oil prices rose after the European Union agreed to block the majority of oil imports from Russia because of its invasion of Ukraine. Benchmark U.S. crude was up 1.8% at $117.19 per barrel. Brent crude, the international standard, was up 2 cents to $117.62 after earlier topping $120.

The jump of more than 50% for oil prices so far this year has been a big contributor to the very high inflation sweeping the world. Earlier Tuesday, a report showed inflation in the 19 countries that use the euro currency hit 8.1% in May, the highest level since records began in 1997.

In the U.S., President Joe Biden will meet with Federal Reserve Chairman Jerome Powell on Tuesday as soaring inflation continues to carve up Americans’ earnings.

The meeting Tuesday will be the first since Biden renominated Powell to lead the central bank and weeks after the Senate confirmed a second term. The White House said the pair would discuss the state of the U.S. and global economy and especially four-decade high inflation, described as Biden’s “top economic priority.”

The S&P 500 is on track for a 0.3% loss for May, which would bring it 14.1% below its record set early this year. But the slight move for the month belies the big swings that shook investors along the way.

For the first time since the dot-com bubble was deflating two decades ago, the S&P 500 tumbled to seven straight losing weeks through mid-May. Slowing data on the U.S. economy heightened worries that high inflation will force the Federal Reserve to raise interest rates so aggressively that it will cause a recession.

Some high-profile retailers also said inflation is eating into their profits, adding more urgency to the concerns. They all combined to bring Wall Street to the brink of what’s called a bear market, where the S&P 500 was on the verge of closing more than 20% below its record.

“Outside of a peace agreement in Ukraine, it’s difficult to construct a case for more than a bear market rally,” which would be just a temporary turn higher for stocks, Morgan Stanley strategists led by Michael Wilson wrote in a report. They said that the more stock prices rise, the more likely the Federal Reserve will be to hike interest rates.

But stocks have managed to avoid a full-blown bear market, at least so far, with the S&P 500 yet to close more than 20% below its record. The S&P 500 is coming off its best week in a year and a half, in part on hopes that inflation may have hit its peak and will begin moderating. Speculation has grown that the Fed may consider a pause in rate hikes at its September meeting.

Relaxing anti-COVID restrictions in China have also helped, easing some of the worries about the world’s second-largest economy and about more snarls to global supply chains.

China's factory activity contracted again in May, but it's almost back to growing. More factories, shops and other businesses are being allowed to reopen this week in Shanghai and in the Chinese capital, Beijing, after authorities declared outbreaks under control.

U.S. Treasury yields climbed following reports showing confidence among U.S. consumers was stronger than economists expected and home prices rose more than forecast.

The yield on the 10-year Treasury climbed to 2.86% from 2.75% late Friday.

Starting on Wednesday, the Fed will begin allowing some of the trillions of dollars' worth of Treasurys and other bonds that it amassed through the pandemic to roll off its balance sheet. Such a move should put upward pressure on longer-term Treasury yields, and it's one of the ways the Fed is trying to stamp out inflation by slowing the economy.

___

AP Business Writer Elaine Kurtenbach contributed.

  • Associated Categories: Associated Press (AP), AP National News, AP Online National News, AP Business, AP Business - Corporate News, 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.
In big bid to punish Moscow, EU bans most Russia oil imports
In the most significant effort yet to punish Russia for its war in Ukraine, the European Union agreed to ban the overwhelming majority of Russian oil imports
11:40AM ( 6 minutes ago )
Most stocks fall on Wall Street as crude oil prices climb
U.S. stocks are falling Tuesday as Wall Street nears the end of a tumultuous month
11:38AM ( 8 minutes ago )
Most stocks fall on Wall Street, as crude oil prices climb
U.S. stocks are falling Tuesday as Wall Street nears the end of a tumultuous month
11:29AM ( 16 minutes ago )
Associated Press (AP)
Depp-Heard jury still sorting through weeks of dirty laundry
A jury has resumed deliberations in the defamation lawsuits of Johnny Depp and Amber Heard
10:42AM ( 1 hour ago )
Biden to meet Fed chair as inflation bites US pocketbooks
President Joe Biden is set to meet with Federal Reserve Chairman Jerome Powell as soaring inflation takes a bite out of Americans’ pocketbooks
10:29AM ( 1 hour ago )
Some Democrats voting in GOP primaries to block Trump picks
Georgia Secretary of State Brad Raffensperger probably would not have won last week’s Republican primary without Democrats
10:21AM ( 1 hour ago )
AP National News
Some Democrats voting in GOP contests to block Trump picks
Georgia Secretary of State Brad Raffensperger probably would not have won last week’s Republican primary without Democrats
6:48AM ( 4 hours ago )
In major blow, EU bans imports of most Russian oil
In the most significant effort yet to punish Russia for its war in Ukraine, the European Union agreed to ban the overwhelming majority of Russian oil imports
6:29AM ( 5 hours ago )
War crimes meeting held at Hague over Russia-Ukraine war
Representatives of a group of nations working together to investigate war crimes in Russia’s invasion of Ukraine are meeting in The Hague amid ongoing calls for those responsible for atrocities to be brought to justice
5:59AM ( 5 hours ago )
AP Online National News
Hit by pandemic curbs, India's quarterly growth slows to 4%
India’s economic growth, hit by pandemic curbs and price increases, slowed to 4.1% in the January-March quarter, according to figures released Tuesday by the government
10:34AM ( 1 hour ago )
Lebanon's Parliament reelects Berri as speaker for 7th time
Lebanon’s longtime parliament speaker who has held the post for 30 years has been reelected for a seventh four-year term by a slim majority
10:25AM ( 1 hour ago )
US consumer confidence slips in May
U.S. consumer confidence edged down in May as Americans’ view of their present and future prospects dimmed in the midst of persistent inflation
10:15AM ( 1 hour ago )
AP Business
Coal ash workers dying as lawsuit over illnesses drags on
Workers who cleaned up the 2008 Kingston, Tennessee, coal ash spill spent years working in conditions that they believe made them sick
11:26AM ( 1 day ago )
Serbia ignores EU sanctions, secures gas deal with Putin
The Serbian populist president has announced that he has secured an “extremely favorable” gas deal with Russia
11:51AM ( 1 day ago )
Energy secretary: US offshore wind jobs should be union jobs
The U.S. energy secretary and Danish wind developer Orsted say they want American union workers to build offshore wind farms to dot the U.S. coastlines — the building trades workers who could otherwise be left out of a transition to renewable resources
7:26AM ( 3 days ago )
AP Business - Corporate News
Live updates | Russian official: hatred motive for sanctions
The deputy head of Russia’s Security Council is alleging that sanctions against the country, including new measures targeting oil exports, are aimed at hurting ordinary Russians and motivated by hatred
6:16AM ( 5 hours ago )
World stocks mixed, oil prices trade near $120 a barrel
World shares are mixed after the European Union agreed to embargo most Russian oil imports by the year's end, sparking a fresh spike in oil prices
4:41AM ( 7 hours ago )
Asian stocks mixed, oil prices trade near $120 a barrel
Asian shares are mixed after reports showed China's manufacturing slowdown is moderating
2:05AM ( 9 hours ago )
AP Business - Economy
Live updates | Ukraine warns of Russia food supply blackmail
Ukrainian President Volodymyr Zelenskyy has asked France not to succumb to Russian “blackmail” over food supplies at a meeting with French Foreign Minister Catherine Colonna
12:42PM ( 23 hours ago )
Live updates | French journalist killed in Ukraine, 1 hurt
A French news broadcaster says a French journalist has been killed in Ukraine while covering a humanitarian evacuation operation
12:11PM ( 23 hours ago )
Russia offers foreign debt payment system similar to gas one
Russia says it will use an arrangement similar to that used for payments for its gas supplies to pay its dollar-denominated foreign debts
7:00AM ( 1 day ago )
AP Business - Financial Markets
Sarah Ramsey, top thoroughbred breeder and owner, dies at 83
Sarah Ramsey, a leading thoroughbred breeder and owner, has died
12:22AM ( 11 hours ago )
EU leaders, divided over Russia oil embargo, seek a solution
European Union leaders are struggling to agree on an oil embargo against Russia over its war on Ukraine
3:25PM ( 20 hours ago )
Crowd confronts cleric at Iran tower collapse that killed 32
Protesters angry over a building collapse in southwestern Iran that killed at least 32 people have shouted down an emissary sent by Supreme Leader Ayatollah Ali Khamenei
2:19PM ( 21 hours ago )
AP Business - Industries
Key inflation gauge slowed to still-high 6.3% over past year
An inflation gauge closely tracked by the Federal Reserve rose 6.3% in April from a year earlier, just below a four-decade high set in March and the first slowdown since November 2020
11:02AM ( 4 days ago )
Sri Lanka PM stresses urgency for economic reform plan
Sri Lanka’s prime minister says that he will quickly prepare an economic reform program and seek approval from the International Monetary Fund
2:22PM ( 4 days ago )
AP Business - Financial Services
Des Moines tries cooperation to reduce farm runoff
A Des Moines utility has filed lawsuits, proposed legislation and even tried public shaming in an effort to clean up drinking water that comes from rivers teeming with agricultural pollutants
11:55AM ( 1 day ago )
How San Diego secured its water supply, at a cost
As a worsening drought forces millions of Californians to use less water, one corner of Southern California has largely shielded itself from supply-related woes: San Diego County
9:02AM ( 2 days ago )
Indy 500 waves green flag on sustainability with lofty goals
IndyCar's latest push to go green includes T-shirts made from recycled plastic bottles
4:19PM ( 2 days ago )
AP Business - Utilities
In big bid to punish Moscow, EU bans most Russia oil imports
In the most significant effort yet to punish Russia for its war in Ukraine, the European Union agreed to ban the overwhelming majority of Russian oil imports
11:40AM ( 6 minutes ago )
Most stocks fall on Wall Street, as crude oil prices climb
U.S. stocks are falling Tuesday as Wall Street nears the end of a tumultuous month
11:29AM ( 17 minutes ago )
Shanghai moves toward ending 2-month COVID-19 lockdown
Shanghai authorities say they will take major steps Wednesday toward reopening China’s largest city after a two-month COVID-19 lockdown that has throttled the national economy and largely confined millions of people to their homes
11:14AM ( 33 minutes ago )
Hungary's Orban wins exemption in EU Russian oil embargo
Hungary’s divisive leader has once again got his own way with the European Union
11:11AM ( 35 minutes ago )
Uvalde grieves, says goodbyes at visitations, funerals
It should have been the first day of a joyous week for Robb Elementary School students — the start of summer break
11:06AM ( 40 minutes ago )