Stocks turn mixed on Wall Street a day after big sell-off

NEW YORK (AP) – Stock indexes on Wall Street ended a choppy day of trading with a mixed end on Tuesday, after an afternoon rally in technology companies helped reverse an early slide.

After swinging between a 1.9% gain and a 0.8% loss, the S&P 500 closed up 0.2%, breaking a three-day losing streak. A day earlier, the benchmark index fell 3.2%, hitting its lowest level in more than a year.

The Dow Jones Industrial Average slipped 0.3%, while the tech-heavy Nasdaq climbed nearly 1%.

Large technology stocks, which have been swinging both up and down sharply recently, helped offset losses elsewhere in the market.

The behind-the-scenes action of the market took place ahead of the release of the Labor Department’s Consumer Price Index, a leading economic report on inflation that investors will be watching closely as they try to gauge how aggressively the Federal Reserve is taking interest. Will raise rates as it fights inflation.

Economists expect the index to fall to 8.1% in the 12 months ended April. This will be the first annual decline since August.

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Randy Frederick, Managing Director, said, “If inflation is very low as they are expected to be, we could very well see a market rally because maybe people think the Fed is going to be as aggressive or as aggressive.” will not increase.” Trading and Derivatives in Charles Schwab.

The S&P 500 closed 9.81 points higher at 4,001.05. The Dow lost 84.96 points to close at 32,160.74. The Nasdaq closed 114.42 points higher at 11,737.67.

The Russell 2000 Index of Small Companies fell 0.29 points, or less than 0.1%, to 1,761.79.

Large technology stocks, which have been swinging both up and down sharply recently, have accounted for much of the S&P 500’s turnaround. Apple grew 1.6% and Microsoft 1.9%.

Gains in communications and health care stocks also helped lift the market, outweighing declines in financial, real estate and other sectors.

Bond yields were mixed. The yield on the 10-year Treasury fell to 2.99% from 3.08% late Monday.

Treasury yields are rising and stocks have been extremely volatile recently as Wall Street adjusts to an aggressive shift in Federal Reserve policies away from supporting the economy. The central bank has been raising interest rates from historic lows to fight rising inflation, which is at its highest level in four decades.

The Fed has raised its benchmark rate to near zero, where it sat for most of the coronavirus pandemic. Last week, it hinted that it would double the size of future growth.

Higher prices on raw materials, shipping and labor are cutting into corporate financial results and forecasts. Many companies are raising the prices of everything from clothing to food, raising concerns that consumers will eventually cut spending, hurting economic growth.

Russia is running invasion of ukraine The concern has only increased due to rising inflation. The conflict pushed up already high oil and natural gas prices even more, while putting more pressure on the cost of key food items such as wheat and corn. US crude oil prices fell 3.2% on Tuesday, but are up nearly 36% in 2022. Wheat prices are up more than 40% for the year.

Should Wednesday’s consumer price index show a decline in inflation compared to a year ago, that could put investors in a buying mood, at least for a while.

“We’re a little oversold in a very short period of time,” Frederick said. “So, if we can get the print below 8% year-over-year, I think we may get a little bit of a market rally.

Nevertheless, most of the recent market rallies have often been followed by a downtrend, he said.

Meanwhile, investors are still reviewing the latest round of corporate earnings, with mixed results. peloton The pre-pandemic darlings fell 8.7% as investors were much weaker than Wall Street had expected. Food distributor Sysco rose 6.1% after beating analysts’ forecasts.

Migraine Treatment Developer Biohaven Pharmaceutical Pfizer said it would buy the company for $11.6 billion, following a 68.4% increase. Pfizer already owns a stake in the company.

Vega reported from Los Angeles.

Copyright 2022 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed without permission.

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