NEW YORK (AP) — Stocks faltered on Wall Street on Tuesday as investors await news on inflation and corporate earnings this week amid worries about recessions hitting economies around the world.
The S&P 500 was up 0.2% at 12:01 a.m. EST. The benchmark fell as much as 1.2% earlier after a bleak forecast from the International Monetary Fund fueled recession fears.
The Dow Jones Industrial Average rose 258 points, or 0.8%, to 29,459 and the Nasdaq fell 0.1%.
Healthcare companies and retailers made some of the biggest gains. Johnson & Johnson rose 1.4% and Walmart 2.2%.
Tech stocks remained the top weightings, tempering gains elsewhere in the market. Chipmakers continued to slide following the US government’s decision to tighten export controls on semiconductors and chipmaking equipment to China. Qualcomm fell 3%.
Markets in Europe and Asia fell.
Uber fell 6.8% and Lyft 7.4% following a US government proposal that could give contract workers at ride-sharing companies and other gig economy businesses full job status. ’employees.
US crude oil prices fell 2%.
Bond yields were mixed. The 10-year Treasury yield, which influences mortgage rates, rose to 3.90% from 3.88% on Friday evening. The 2-year Treasury yield, which follows the action of the Federal Reserve, fell to 4.27% from 4.30% on Friday evening. Bond markets were closed on Monday for a public holiday.
Recession fears have weighed heavily on markets as stubbornly scorching inflation burns businesses and consumers alike. US stocks are coming off four straight losses. Economic growth is slowing as consumers moderate spending and central banks raise interest rates globally.
Wall Street is watching the Fed closely as it continues to aggressively raise its benchmark interest rate to make borrowing more expensive and slow economic growth. The objective is to calm inflation, but the strategy carries the risk of slowing the economy too much and plunging it into a recession.
The International Monetary Fund on Tuesday lowered its forecast for global economic growth in 2023 to 2.7%, from 2.9% it had estimated in July. The cut comes as Europe faces a particularly high risk of recession with energy prices soaring amid Russia’s invasion of Ukraine.
Investors have a busy week ahead of economic and corporate earnings reports that could provide a clearer picture of the impact of inflation, while raising questions about whether the Fed should continue its aggressive rate hikes .
Investors still expect the Fed to raise its key rate by three-quarters of a percentage point next month. This would be the fourth such increase, triple the usual amount, and would bring the rate to a range of 3.75% to 4%. He started the year at practically zero.
The Fed will release the minutes of its last meeting on Wednesday, perhaps giving Wall Street more information on its views on inflation and next steps. The government will also release its wholesale price report, which will help provide more detail on how inflation is hitting businesses.
The closely watched consumer prices report will be released on Thursday and a retail sales report is due on Friday.
The latest round of corporate earnings will rise this week with reports from PepsiCo, Delta Air Lines and Domino’s Pizza. Banks, including Citigroup and JPMorgan Chase, will also report on the results.
Yuri Kageyama contributed to this report.
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