mcloudyn.png
Thursday August 11th, 2022 10:57PM

Stocks hold steady on Wall Street at close of a brutal week

By The Associated Press
Related Articles
  Contact Editor

NEW YORK (AP) — Stocks are holding steady in afternoon trading on Wall Street Friday at the end of a brutal week.

The S&P 500 fell 0.2% as of 12:02 p.m. Eastern. The Dow Jones Industrial Average fell 146 points, or 0.5%, to 29,774 and the Nasdaq rose 0.8%.

Every major index is on a track for weekly losses after suffering several major drops this week as investors adjust to the bitter medicine of higher interest rates that the Federal Reserve and other central banks are using in their battle against inflation. Higher rates fight inflation but they also slow down the economy and can push prices lower for stocks and bonds.

“Any lack of clarity or lack of confidence in the Federal Reserve is going to create a lot of volatility in the market,” said Megan Horneman, chief investment officer at Verdence Capital Advisors.

The benchmark S&P 500 is down more than 6% for the week. Worries over inflation, rising interest rates and a recession risk dragged it into a bear market earlier this week, meaning it had dropped more than 20% from its peak. It’s now about 23% below its record set early this year and back to where it was in late 2020. That effectively erases 2021, which was one of the best years for Wall Street since the turn of the millennium.

The key concern for investors has been whether aggressive interest rate hikes from the Federal Reserve and other central banks around the world will temper record high inflation without pushing the U.S. and other economies into a recession.

“There's a lot of uncertainty right now about the timing of a recession, but the risks are clearly rising,” Horneman said.

On Wednesday, the Fed hiked its key short-term interest rate by three-quarters of a percentage point, triple the usual move. It could consider another increase that big at its next meeting in July. At the same time, the central bank is allowing some of the trillions of dollars of bonds it purchased through the pandemic to roll off its balance sheet. That should put upward pressure on longer-term interest rates. It’s another way central banks have been ripping away supports they earlier propped underneath markets to juice the economy.

The effort from the Fed to slow the U.S. economy is happening at the same time that some other measures of economic growth, such as retail sales, have been slowing down. That has raised concerns that the Fed's actions could wind up being too aggressive.

Investors will have a chance next week to again take a measure of the Fed's thinking when Chair Jerome Powell testifies to Congress. The testimony is scheduled for Wednesday and Thursday.

Technology companies rose. Apple rose 1%. Health care companies, retailers and banks were also making gains. Energy companies fell as U.S. crude oil prices dipped 5.3%. Exxon Mobil fell 5.1%.

Bond yields eased. The yield on the 10-year Treasury fell to 3.22% from 3.30% late Thursday.

U.S. markets will be closed Monday in observance of the Juneteenth holiday.

  • Associated Categories: Associated Press (AP), AP National News, AP Online National News, Top General short headlines, AP Business, AP Business - Economy, AP Business - Financial Markets, AP Business - Industries, AP Business - Financial Services
© Copyright 2022 AccessWDUN.com
All rights reserved. This material may not be published, broadcast, rewritten, or redistributed without permission.
Nebraska rushes to build horse tracks despite few fans
Horse races are regularly held in only two spots in Nebraska, but the tracks in Grand Island and Columbus are usually pretty quiet apart from the rumble of thoroughbreds that stomp past the often empty grandstands
10:45AM ( 9 minutes ago )
Stocks hold steady on Wall Street at close of a brutal week
Stocks are holding steady in early trading on Wall Street Friday at the end of a brutal week
10:38AM ( 16 minutes ago )
Associated Press (AP)
FDA authorizes 1st COVID-19 shots for infants, preschoolers
U.S. regulators have authorized the first COVID-19 shots for infants and preschoolers
10:04AM ( 49 minutes ago )
Wall Street opens gingerly higher at end of a brutal week
Stocks are opening gingerly higher on Wall Street Friday at the end of a brutal week
9:44AM ( 1 hour ago )
Biden hosts climate meeting amid high gas price pressure
President Joe Biden is convening a virtual meeting of some of the world’s largest economies to discuss the next steps on climate change
9:03AM ( 1 hour ago )
AP Business
Takeaways from AP interview: Biden on inflation, US psyche
President Joe Biden sat down with The Associated Press to discuss the state of the economy, his concerns about the national mood and his commitment to standing up to Russia’s aggression in Ukraine
7:13AM ( 3 hours ago )
Foreigners pay more for gas in Hungary. It risks an EU fight
Hungary has placed price caps on fuel and some food and imposed special taxes on industries as the governments tries to ease an economic downturn and the highest inflation in nearly 25 years
5:53AM ( 5 hours ago )
Global stocks rebound after Wall St fall on economy fears
Global stocks and Wall Street futures have rebounded a day after tumbling on fears economic activity will be depressed by interest rate hikes to cool inflation
5:29AM ( 5 hours ago )
AP Business - Economy
Wall Street tumbles on fears for economy as more rates rise
Wall Street tumbled Thursday as worries roared back to the fore that the world’s fragile economy may buckle under higher interest rates
5:32PM ( 17 hours ago )
Wall Street stumbles 3.3% as fears of a recession grow
Stocks slumped again on Wall Street Thursday, erasing another 3.3% from the S&P 500 and bringing the index 23.6% below the peak it reached in January
4:19PM ( 18 hours ago )
Stocks tumble on economy fears after briefest of reprieves
Markets worldwide are back to tumbling on Thursday as worries about a fragile economy roar back to the fore
3:10PM ( 19 hours ago )
AP Business - Financial Markets
Residents say China used health tracker for crowd control
Angry bank customers were travelling to a central China city to try and retrieve their savings from troubled rural banks when they were stopped in their tracks
5:12AM ( 5 hours ago )
Florida only state not preordering toddler COVID-19 vaccines
Florida is the only state that hasn’t preordered COVID-19 vaccines for toddlers in anticipation of their final approval by the federal government
8:12PM ( 14 hours ago )
California won't immediately list Joshua tree as threatened
California won’t be listing the iconic western Joshua tree as a threatened species for now
5:43PM ( 17 hours ago )
AP Business - Industries
Bank of England under pressure to aggressively raise rates
The Bank of England is under pressure to raise interest rates more aggressively amid concern that the quarter-percentage-point hike expected Thursday will do little to combat price increases that have pushed inflation to a 40-year high
4:42AM ( 1 day ago )
Asia shares mixed after Fed assurance on rates lifts Wall St
Asian shares are mixed after the Federal Reserve raised its key interest rate by three-quarters of a point and signaled more rate hikes were coming to fight inflation
2:32AM ( 1 day ago )
Pakistani govt chided for 'Drink less tea, save money' plea
A minister in Pakistan’s newly elected government is facing criticism following his plea to the nation to drink less tea to help save on imports amid a deepening economic crisis
12:16AM ( 1 day ago )
AP Business - Financial Services
Nebraska rushes to build horse tracks despite few fans
Horse races are regularly held in only two spots in Nebraska, but the tracks in Grand Island and Columbus are usually pretty quiet apart from the rumble of thoroughbreds that stomp past the often empty grandstands
10:45AM ( 9 minutes ago )
Japan top court: Govt not responsible for Fukushima disaster
Japan’s Supreme Court has ruled that the government is not liable for the 2011 Fukushima nuclear crisis, dismissing thousands of evacuees’ demands that the state, not just the utility, pay compensation for damage to their lives
10:31AM ( 22 minutes ago )
Larry Nassar loses last appeal in sexual assault scandal
The Michigan Supreme Court has rejected a final appeal from sports doctor Larry Nassar, who was sentenced to decades in prison for sexually assaulting gymnasts, including Olympic medalists
10:20AM ( 33 minutes ago )
Borda to retire as NY Philharmonic head, Ginstling hired
Deborah Borda will retire as president and CEO of the New York Philharmonic at the end of the 2022-23 season
10:14AM ( 40 minutes ago )
Towns near Yellowstone fear impact of lost tourism season
The severe flooding at Yellowstone National Park has left business owners in some of the park’s gateway towns wondering how they’ll make ends meet without a steady stream of customers during what is normally peak tourism season
10:10AM ( 43 minutes ago )