sunny.png
Tuesday July 5th, 2022 5:19PM

Wall Street ends broadly higher after sharp losses last week

By The Associated Press
Related Articles
  Contact Editor

NEW YORK (AP) — Stocks are ending higher on Wall Street Tuesday, clawing back some of the ground they lost last week in their worst weekly drop since the beginning of the pandemic. The S&P 500 rose 2.4%. It’s still 21.5% below the record high it set in January. The tech-heavy Nasdaq climbed 2.5% and the Dow Jones Industrial Average added 2.1%. Markets will be closely watching congressional testimony this week from Federal Reserve Chair Jerome Powell for more clues about the Fed’s thinking about inflation and future interest rate hikes. The yield on the 10-year Treasury note rose to 3.30%.

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

NEW YORK (AP) — Stocks rose broadly on Wall Street Tuesday, clawing back some of the ground they lost in their worst weekly drop since the beginning of the pandemic.

The S&P 500 rose 2.7% as of 3:25 p.m. Eastern, on pace to recoup a little bit less than half of the benchmark index's losses last week. The Dow Jones Industrial Average rose 694 points, or 2.3%, to 30,585 points and the Nasdaq jumped 2.8%.

Technology stocks had some of the strongest gains. Apple rose 3.4% and Microsoft rose 2.5%.

Retailers, health care companies and banks also made solid gains. Kellogg rose 2.3% after the maker of Frosted Flakes and Rice Krispies said it would split into three companies. Spirit Airlines jumped 8% after JetBlue sweetened its buyout offer for the budget airline.

European markets ended mostly higher, while Asian markets closed mixed overnight. The yield on the 10-year Treasury rose to 3.30% from 3.23% late Friday. Markets were closed Monday for the observation of Juneteenth.

Roughly 90% of stocks within the S&P 500 gained ground. The index remains stuck in a slump, though, along with every other major index, and is still down about 21% from the record high it set in January. It's posted a weekly loss in 10 out of the last 11 weeks.

Stocks have been generally sliding as investors adjust to higher interest rates that the Federal Reserve and other central banks are increasingly doling out. The aggressive rate hikes are part of a plan to temper record-high inflation, but investors are worried that the Fed risks slowing economic growth too much and bringing on a recession.

The worries over inflation and interest rates have been worsened by a spike in energy prices following Russia's invasion of Ukraine. The price of U.S. crude oil rose 1% to settle at $110.65 per barrel Tuesday. It's up about 52% for the year. That has taken a bigger bite out of people's wallets at the gas pump and is prompting a slowdown in spending elsewhere.

The lingering list of worries has made for an extremely turbulent market. Daily swings between gains and losses has been common and major indexes have sometimes shifted between sharp gains and losses on an hourly basis.

“In these kinds of markets, you just get bigger volatility in both directions,” said Ross Mayfield, investment strategist at Baird. “The entire market is being shaped by the Fed and inflation numbers.”

Last week, the Fed hiked its key short-term interest rate by triple the usual amount for its biggest increase since 1994. It has also just begun 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 and is another way central banks are yanking supports earlier propped underneath markets to bolster the economy.

The Fed’s moves are happening as some discouraging signals have emerged about the economy, including sagging spending at retailers and soured consumer sentiment. The National Association of Realtors on Tuesday reported that sales of previously occupied U.S. homes slowed for the fourth consecutive month. The housing market, a crucial part of the economy, is slowing as homebuyers face record high prices and sharply higher home financing costs than a year ago following a rapid rise in mortgage rates.

Investors will be closely listening for clues about the Fed's plans for possible additional rate hikes when Chair Jerome Powell speaks before congressional committees this week. The central bank could consider another such mega-hike at its next meeting in July, but Powell has said increases of three-quarters of a percentage point would not be common.

___

Veiga reported from Los Angeles.

  • Associated Categories: Associated Press (AP), 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.
Stars hire 2-time Cup Final coach DeBoer to replace Bowness
The Dallas Stars have hired Peter DeBoer as their new coach
4:15PM ( 18 minutes ago )
Wall Street ends broadly higher after sharp losses last week
Stocks are ending higher on Wall Street Tuesday, clawing back some of the ground they lost last week in their worst weekly drop since the beginning of the pandemic
4:08PM ( 25 minutes ago )
Facebook and US sign deal to end discriminatory housing ads
The Justice Department says Facebook will change its algorithms to prevent discriminatory housing advertising as its parent company subjects itself to court oversight in a response to a U.S. lawsuit
4:04PM ( 29 minutes ago )
Associated Press (AP)
Stocks gain ground, clawing back a piece of last week's drop
Stocks rose broadly on Wall Street Tuesday, clawing back some of the ground they lost in their worst weekly drop since the beginning of the pandemic
3:35PM ( 58 minutes ago )
Massive New Mexico blaze blamed on miscalculations, errors
U.S. Forest Service employees made multiple miscalculations, used inaccurate models and underestimated how dry conditions were, causing a planned burn to reduce the threat of wildfires to turn into the largest blaze in New Mexico's recorded history
3:28PM ( 1 hour ago )
'Everything is on fire': Ukraine region weathers bombardment
Russian attacks are laying down a curtain of fire across areas of eastern Ukraine where pockets of resistance are denying Moscow full military control of the region
2:56PM ( 1 hour ago )
AP Business
UK rail strike strands commuters, pits workers against govt
Tens of thousands of railway workers have walked off the job in Britain, bringing the train network to a crawl in the country’s biggest transit strike in three decades
12:48PM ( 3 hours ago )
Fed's Powell facing rising criticism for inflation missteps
Federal Reserve Chair Jerome Powell won praise for his deft leadership during the maelstrom of the pandemic recession
12:18PM ( 4 hours ago )
US charitable giving hit record in 2021 but inflation looms
Charitable giving in the United States reached a record $485 billion in 2021, though the increase did not keep pace with inflation
12:15PM ( 4 hours ago )
AP Business - Economy
Asian stocks rebound as Wall St futures gain after holiday
Asian stocks have rebounded as Wall Street futures moved higher while U.S. markets were closed for a holiday
3:26AM ( 13 hours ago )
Crypto investors' hot streak ends as harsh 'winter' descends
The wealth-generating hot streak for bitcoin and other cryptocurrencies has turned brutally cold
5:38PM ( 22 hours ago )
Sri Lankan students demand government resign over crisis
Thousands of students from state universities have marched in Sri Lanka’s capital to demand the president and prime minister resign over an economic crisis that has caused severe shortages of essential supplies and disrupted people’s livelihoods and education
10:17AM ( 1 day ago )
AP Business - Financial Markets
Supreme Court rejects Bayer's bid to stop Roundup lawsuits
The Supreme Court has rejected Bayer’s appeal to shut down thousands of lawsuits claiming its Roundup weedkiller causes cancer
12:07PM ( 4 hours ago )
'It's just hell there': Russia still pounds eastern Ukraine
Russia’s military machine is persevering in its ferocious effort to grind down Ukraine’s defenses
8:17PM ( 20 hours ago )
Biden says decision on gas tax holiday may come this week
President Joe Biden says he’s considering pressing for a holiday on the federal gasoline tax
5:57PM ( 22 hours ago )
AP Business - Industries
Wall Street closes worst week since 2020 with slight gain
Wall Street closed out its most punishing week since the 2020 coronavirus crash with a meandering day of trading Friday that left it a bit higher
4:37PM ( 3 days ago )
Stocks eke out a gain but still mark worst week since 2020
Stocks ended another bumpy day mostly higher on Wall Street but still wound up with their biggest weekly losses since March 2020, when markets went into freefall at the onset of coronavirus lockdowns
4:13PM ( 4 days ago )
Stocks drift higher on Wall Street at close of a brutal week
U.S. stocks are drifting upward on Friday, as Wall Street nears the end of one of its worst weeks since the 2020 coronavirus crash
3:02PM ( 4 days ago )
AP Business - Financial Services
Stars hire 2-time Cup Final coach DeBoer to replace Bowness
The Dallas Stars have hired Peter DeBoer as their new coach
4:15PM ( 19 minutes ago )
Facebook and US sign deal to end discriminatory housing ads
The Justice Department says Facebook will change its algorithms to prevent discriminatory housing advertising as its parent company subjects itself to court oversight in a response to a U.S. lawsuit
4:04PM ( 30 minutes ago )
Justices rule religious schools must get Maine tuition aid
The Supreme Court has ruled that religious schools can’t be excluded from a Maine program that offers tuition aid for private education
4:04PM ( 30 minutes ago )
Women's PGA Championship doubles prize money to $9 million
The KPMG Women’s PGA Championship is doubling the size of its purse to $9 million
3:59PM ( 34 minutes ago )
Serena Williams wins 1st match of comeback after year away
Serena Williams has won the first match of her comeback
3:57PM ( 36 minutes ago )