Stocks rise hesitantly after shaky start on Wall Street | Economic news

By DAMIAN J. TROISE, AP Business Writer

NEW YORK (AP) — Stocks were tentatively rising on Wall Street Monday morning after shaking off a shaky start. The uneven trade follows a brutal April in which massive tech sales sent major benchmarks plummeting.

The S&P 500 was up 0.6% at 10:44 a.m. ET. The Dow Jones Industrial Average rose 203 points, or 0.5%, to 33,170 and the Nasdaq rose 1%.

Communications and technology companies made solid gains and helped offset losses elsewhere in the market. Facebook parent company Meta jumped 3.4% and Microsoft 1.3%.

The lackluster start to May follows a dismal April, in which big tech companies dragged the broader market down as they began to look overvalued, especially with interest rates rising. interest which should increase sharply. Many companies in the sector have expensive stock values ​​and therefore have more strength to push the major indexes up or down.

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US crude oil prices fell 2.6%, although the reaction from energy stocks was mixed. European energy ministers are due to meet to discuss Russian supply problems and sanctions. Russia’s invasion of Ukraine caused already high oil and natural gas prices to spike.

Bond yields rose significantly. The 10-year Treasury yield rose to 2.98% from 2.89% on Friday night.

Treasury yields have risen all year as investors brace for higher interest rates. Markets are expecting a very big interest rate hike this week from the Federal Reserve as it tries to rein in inflation, which is at its highest level in four decades.

The central bank is expected to raise short-term interest rates to double the usual amount when it releases its latest statement on Wednesday. It has already raised its overnight rate once, the first such increase since 2018, and Wall Street expects several big increases in the coming months.

Fed rate hikes will further increase borrowing costs across the board for people buying cars, using credit cards and taking out mortgages to buy homes. Investors are worried about rising inflation and its impact on businesses and consumers. But they also worry about how rate hikes will play into the fight against inflation and whether a more aggressive Fed could actually hurt economic growth.

Concerns about rising inflation are also weighing on the latest round of corporate earnings. Disappointing earnings or outlook from Apple, parent Google and Amazon helped fuel sales last week. Investors are looking at the latest results and statements to gauge how much rising costs have impacted operations and whether price increases have hampered sales.

Wall Street is in for another busy week of earnings reports. Expedia and Clorox are among many companies that announced their results later Monday. Pfizer reports results Tuesday, CVS Health reports results Wednesday, and Kellogg reports results Thursday.

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