rallied late on Tuesday to end higher for a second straight day as technology and energy shares gained, while
Corp's warning about excess inventory weighed on retail stocks for much of the session The S&P 500 technology index rose 1% and gave the benchmark index its biggest boost. Microsoft Corp shares added 1.4%. Apple
Inc shares climbed 1.8% despite news earlier in the day that the company must change the connector on iPhones sold in Europe by 2024 after EU countries and lawmakers agreed to a single charging port for mobile phones, tablets and cameras
The S&P 500 technology index rose 1% and gave the benchmark index its biggest boost. Microsoft Corp shares added 1.4%.
The S&P 500 energy sector index jumped 3.1% to end at its highest level since 2014, with oil prices sharply higher. At the same time, shares of Target Corp fell 2.3% after the retailer said it would have to offer deeper discounts and cut back on stocking discretionary items.
Equity trading was choppy, with indexes down early in the day, but the market has been recovering from recent steep losses.
Recently, we've had a nice bounce ... and in general, investors are feeling better right now. But we are very much in a seesaw market, as we've seen all year," said Tim, senior portfolio strategist at In galls & Snyder in New York. At some point, we will put in a bottom, and the market will move higher. We have a hard time believing that's any time soon, given a number of fundamental issues overhanging the market," he said. "Certainly what we've seen today from Target isn't good news in terms of the consumer."
Long-dated US Treasury yields tumbled after the Target news, however, as it fueled some speculation that the worst of inflation may be in the past.
Industrial Average rose 264.36 points, or 0.8%, to 33,180.14, the S&P 500 gained 39.25 points, or 0.95%, to 4,160.68 and the
Composite added 113.86 points, or 0.94%, to 12,175.23.
Shares of Walmart fell 1.2%, and the S&P retail index was down 1%.
Consumer price data on Friday is expected to show that inflation remained elevated in May, though core consumer prices, which exclude the volatile food and energy sectors, likely ticked down on an annual basis.
Not all retailers were in the red. Kohl's Corp shares jumped 9.5% after news the department store chain entered exclusive talks with retail store operator Franchise Group Inc over a potential sale that would value it at nearly $8 billion.
Advancing issues outnumbered declining ones on the NYSE by a 2.36-to-1 ratio; on the Nasdaq, a 1.69-to-1 ratio favored advance rs.
The S&P 500 posted 3 new 52-week highs and 30 new lows; the Nasdaq Composite recorded 35 new highs and 121 new lows.
Volume on US exchanges was 10.38 billion shares, compared with the 12.50 billion average for the full session over the last 20 trading days.
US stocks fell in a volatile day of trading as investors weighed prospects for growth against a backdrop of rising prices and tightening monetary policy. Treasuries held gains amid a steady stream of haven bids. The S&P 500 swung back into the red in the last hour of trading, a day after the biggest single-day drop since June 2020 that erased $1.5 trillion from its market value. The Nasdaq 100 posted modest losses, slipping 0.4% on Thursday. Cisco Systems Inc. slid more than 10% after warning that Chinese lockdowns and other supply disruptions would wipe out sales growth in the current quarter.
Treasury yields were lower across the board amid a growing sense of angst over the health of the global economy and selloff in equity markets. Weaker than forecast US jobless claims and a sharp decline in a regional Philadelphia Fed survey also spurred a burst of buying. Gold gained while the dollar weakened against all of its Group-of-10 counterparts. Applied Materials Inc., the biggest maker of machinery used to manufacture semiconductors, fell in post-market trading as persistent chip shortages weighed on its forecast for the current quarter. Ross Stores Inc. dropped more than 15% after the bell as the discount retailer cut its outlook for profit and sales. The selloff in stocks this week has left the S&P 500 on the brink of notching up its seventh weekly decline, the longest streak since the dotcom bubble burst more than two decades ago. Bets that robust earnings can help investors weather this year’s turbulence were thrown in doubt after US consumer titans signaled a growing impact of high inflation on margins and consumer spending. Meanwhile, Federal Reserve officials reaffirmed this week that tighter monetary policy lies ahead, while investors fretted over stagflation risks.
You must be logged in to post a comment.