US stocks rose in early trade, with the S&P 500 moving away from bear market territory after flirting with such levels in the volatile trading session Friday.
The broad market index jumped 1.2% on Monday. At one point on Friday, the S&P 500 Slither so far It was on track to close at least 20% below its January peak – what would have been considered a alcohol market—before the restoration of the land. The technology-focused Nasdaq Composite is up 1% on Monday, while the Dow Jones Industrial Average is up 1.2%.
Stocks have fallen in recent weeks as investors debated how strong the Federal Reserve could be raise interest rates To tame high inflation. Price pressures eroded Some corporate profitsBut money managers are also concerned that tightening financial conditions risks weighing too much on economic growth.
Inflation fears have worsened in recent months as China implemented lockdowns to contain the spread of Covid-19, further straining supply chains. Russia’s war against Ukraine It also caused European countries to shy away from oil and gas in Moscow, driving up prices.
“This year, we are dealing with several issues, which in themselves will be the number one story in any given year,” said Hugh Jimber, global markets analyst at JPMorgan Asset Management. “However, the markets have to deal with all of them at the same time.” This led to increased volatility, he said.
In individual stocks, shares
Jumped 18% after the Wall Street Journal reported that
inside Advanced Technology Acquisition Talks company. Broadcom shares fell 4.5%.
Investors will also be looking forward to earnings reports from Retail stock this weeklooking for clues about how inflation and the ongoing effects of the Covid-19 pandemic are affecting consumers.
Among the companies that have been reported.
Macy’s Stock is up 0.2%, Dollar General is up 1.1%, and Costco is up 1.6%.
In the bond markets, the yield on the benchmark 10-year Treasury rose to 2.813% from 2.785% on Friday. Yields and prices move inversely.
US crude prices rose 0.4% to $119.69 a barrel. Gas prices at the pump remained in record territory over the weekend, averaging $4.59 per gallon nationwide.
Offshore, the Stoxx Europe 600 continental index was up 0.6%. European Central Bank President Christine Lagarde said the European Central Bank is likely to raise its key interest rate to zero or higher by September In a blog post On Monday, he drew a line under an eight-year experiment with negative interest rates amid record inflation and growing concerns about a weaker euro currency.
The euro rose 0.8% against the dollar to trade at $1.0652.
In Asia, the major indices closed with a mixed performance. Japan’s Nikkei 225 is up 1%, while South Korea’s Kospi is up 0.3%. China’s Shanghai Composite was flat, Hong Kong’s Hang Seng fell 1.2%.
Paul Vigna contributed to this article.
Write to Caitlin Ostroff at [email protected]
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