Stocks dip, Roku in play? GDP est. cut, gas nears $5: LIVE UPDATES
U.S. stocks were lower early Wednesday morning after ending in positive territory following a volatile session Tuesday as investors continued to assess the outlook for inflation and economic growth.
On Tuesday, the S&P 500 rose 39.25 points, or 1%, to 4160.68, driven by gains in 10 of the index’s 11 sectors. Meanwhile, the Nasdaq Composite climbed 113.86 points, or 0.9%, to 12175.23 and the Dow Jones Industrial Average increased 264.36 points, or 0.8%, to 33180.14.
All three indexes had opened modestly lower after a profit warning from Target cast a pall over the retail sector.
Stocks have swung in recent days, buffeted by shifts in views about the strength of the economy and the likely path for central banks and interest rates. A big concern is that central banks could act too aggressively as they combat inflation and trigger a slowdown in economic growth, or even a recession.
Gains by Apple, Microsoft and other technology stocks were some of the biggest forces lifting the market, as the 10-year Treasury yield fell below 3%.
Stocks of energy producers also jumped as oil prices rose to roughly $120 per barrel, up more than 55% for the year so far. Exxon Mobil climbed 4.6%, and ConocoPhillips added 4.5%.
Kohl’s soared 9.5% after the department store chain said it’s in advanced talks to sell itself for about $8 billion to Vitamin Shoppe owner Franchise Group. Jam maker J.M. Smucker rose 5.7% after reporting stronger earnings than analysts expected.
Meanwhile, shares were mostly higher in Asia on Wednesday as Advancing Chinese technology shares also pushed Hong Kong sharply higher.
Tokyo’s Nikkei 225 index gained 1% to 28,234.29 while the Kospi in South Korea was little changed at 2,626.14.
In Sydney, the S&P/ASX 200 advanced 0.4% to 7,121.10. Hong Kong’s Hang Seng index jumped 2.1% to 21,987.92 as Chinese technology stocks surged after Beijing approved a new batch of video games. That was seen as a sign the business outlook for tech companies is improving after a prolonged regulatory crackdown.
The Shanghai Composite index reversed early losses, gaining 0.5% to 3,259.24.
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