Stocks slide after Fed’s Powell flags recession risks, Biden’s gas tax waiver: LIVE UPDATES

Symbol Price To change %To change
Me: DJI $30,530.25 +641.47 +2.15%
SP500 $3,764.79 +89.95 +2.45%
I: COMP $11,069.30 +270.95 +2.51%

US stocks fell slightly on Wednesday after a rally on Tuesday US stocks were down early Wednesday morning after rebounding on Tuesday after their worst week since March 2020, giving investors a reprieve from a recent streak of see-saw trading that had falling stocks and cryptocurrencies.

The S&P 500 gained 89.95 points, or 2.4%, to 3764.79, while the Dow Jones Industrial Average added 641.47, or 2.1%, to 30530.25. Meanwhile, the Nasdaq Composite Index jumped 270.95 points, or 2.5%, to 11069.30.

The US stock market was closed on Monday for the June 16 public holiday. Investors rushed to offload riskier assets amid growing fears that central bankers could push the US economy into a recession.

The benchmark S&P 500 index ended the week down 5.8%, its biggest one-week drop in more than two years.

Stocks have mostly fallen in recent weeks as investors adjust to higher interest rates that the Federal Reserve and other central banks are handing out more and more to temper record inflation.

Investors fear that the Fed will slow economic growth too much and cause a recession. Investors are eagerly awaiting what Fed Chairman Jerome Powell will tell Congress on Wednesday, the first of two days of testimony as part of the central bank’s semiannual monetary policy report.

“For now, the fundamental catalyst for a more sustained rebound appears fragile, with all eyes on Fed Chairman Jerome Powell’s testimony to further boost expectations for the policy outlook and inflation.” , Yeap Jun Rong, market strategist at IG in Singapore, said in a statement. comment.

Inflation and interest rate concerns were compounded by a spike in energy prices following Russia’s invasion of Ukraine. The price of US crude oil rose about 52% for the year. This has taken a bigger bite out of people’s wallets at the gas pump and is causing spending to slow elsewhere.

Meanwhile, Asian stocks fell on Wednesday. Japan’s benchmark Nikkei 225 lost 0.4% to end at 26,149.55. Australia’s S&P/ASX 200 fell 0.2% to 6,508.50. The South Korean Kospi fell 2.7% to 2,342.81. Hong Kong’s Hang Seng fell nearly 2.0% to 21,132.42, while the Shanghai Composite fell 1.1% to 3,269.63.

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