Global stock markets and Wall Street futures gained Thursday after lower oil prices helped to offset fears about surging inflation the Federal Reserve said might require more U.S. interest rate hikes.
A weakening of the broader job market, which has remained strong through the pandemic recovery, could signal that inflation is cooling off. Investors will get a clearer picture on Friday when the more detailed June jobs report is released.“That’s what the Federal Reserve wants it to do, they're actually thinking that their policies are working because they are increasing slack in the labor markets," said Zachary Hill, head of portfolio management at Horizon Investments.
Investors are trying to determine whether a recession is on the horizon as the Fed aggressively raises interest rates to temper pervasive inflation. Businesses are getting squeezed by higher costs because of supply chain problems and have raised prices on everything from food to clothing. Consumers have been pulling back on spending as inflation puts a tighter squeeze on budgets. Russia's invasion of Ukraine in February sent energy prices surging in 2022, resulting in record gasoline prices in the U.S. Pain at the pump has only worsened the broader impact from inflation, though there are signs that gasoline prices have begun to recede.The key concern is that the Fed's interest rate hikes could go too far in slowing economic growth and actually bring on a recession.
The recession concerns have been weighing heavily on markets. Every major index is in a slump for the year and the benchmark S&P 500 is in a bear market, or down at 20% from its most recent high. The market is not likely going to regain ground until Wall Street gets clearer signals that inflation is cooling.announced that he was resigning amidCopyright 2022 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed without permission.
Deutschland Neuesten Nachrichten, Deutschland Schlagzeilen
Similar News:Sie können auch ähnliche Nachrichten wie diese lesen, die wir aus anderen Nachrichtenquellen gesammelt haben.
U.S. stocks bounce around as turbulent trading persists on Wall StreetMajor indexes have been swinging between sharp losses and gains on a daily — and sometimes hourly — basis. The broader market, though, is still mired in a deep slump that has dragged the S&P 500 into a bear market, over 20% below its most recent high.
Weiterlesen »
Wall Street ends up as investors absorb Fed minutesWall Street put a seesaw day behind it to close higher on Wednesday, as investors digested new clues on the U.S. central bank's approach to rate policy and its inflation fight detailed in the minutes from the latest Federal Reserve meeting. After a brutal selloff in global equity markets in the first half of the year, nervous investors are keeping a close watch on central bank actions as they try to assess the impact of aggressive rate hikes on global growth. They got their latest data point on Wednesday afternoon, when the minutes of the June 14-15 policy meeting detailed how the U.S. central bank was prompted to make an outsized interest rate increase.
Weiterlesen »
Politico reports 'recession talk surges' from Washington to Wall Street despite Biden's reassurancesDespite President Joe Biden's repeated reassurances, talk of a recession is surging in Washington and on Wall Street, Politico reported Monday.
Weiterlesen »
The Wolf of Wall Street: Investors Will 'Almost Certainly' Profit by Hodling BTC for 3 yearsJordan Belfort would be 'shocked' if holding BTC for 3-5 years does not turn out to be a profitable investment strategy.
Weiterlesen »
Asia-Pacific Markets Poised to Open Lower After Wall Street Staged a ComebackFutures in the Asia-Pacific pointed to a lower open in the region despite Wall Street recovering most of its losses by the close.
Weiterlesen »
Wall Street eyes fourth day of gains with tech set to lead againSamsung's well-received update buoys chipmakers, setting Wall Street up for more gains on Thursday.
Weiterlesen »