Wall Street closes higher but still ends week in the red





The New York Stock Exchange on Wednesday, June 29, 2022 in New York. Stocks are opening broadly lower on Wall Street Thursday, continuing a dismal streak that brought on a bear market earlier this month and has the S&P 500 on track for its worst quarter since the early days of the pandemic at the beginning of 2020. (AP Photo/Julia Nikhinson)

NEW YORK – Stocks shook off a morning slump and ended higher Friday, but not enough to erase their losses for the week. It was the fourth losing week in the last five for Wall Street. The latest choppy trading comes as investors worry about high inflation and the possibility that higher interest rates could bring on a recession. The S&P 500 rose 1.1%. It is coming off of its worst quarter since the onset of the pandemic in early 2020. The Dow Jones Industrial Average rose 1% and the Nasdaq added 0.9%. The yield on the 10-year Treasury fell to 2.89%.

THIS IS A BREAKING NEWS UPDATE. AP’s earlier story follows below.

Stocks on Wall Street were broadly higher in afternoon trading Friday after shaking off a downbeat start, though the major indexes were still on pace to finish in the red for the week.


A currency trader walks by the screens showing the Korea Composite Stock Price Index (KOSPI), left, and the foreign exchange rate between U.S. dollar and South Korean won at a foreign exchange dealing room in Seoul, South Korea, Friday, July 1, 2022. Asian benchmarks were mostly lower on Friday, echoing a decline on Wall Street, after a quarterly report by Japan’s central bank rekindled worries about the world’s third largest economy. (AP Photo/Lee Jin-man)

A currency trader walks by the screens showing the Korea Composite Stock Price Index (KOSPI), left, and the foreign exchange rate between U.S. dollar and South Korean won at a foreign exchange dealing room in Seoul, South Korea, Friday, July 1, 2022. Asian benchmarks were mostly lower on Friday, echoing a decline on Wall Street, after a quarterly report by Japan’s central bank rekindled worries about the world’s third largest economy. (AP Photo/Lee Jin-man)

The S&P 500 rose 0.8% as of 3:29 p.m. Eastern. The benchmark index had been down 0.9% in the early going. The Dow Jones Industrial Average rose 256 points, or 0.8%, to 31,033, while the tech-heavy Nasdaq rose 0.5% after a sell-off in technology stocks eased.

The latest choppy trading comes a day after the S&P 500 closed out its worst quarter since the onset of the pandemic in early 2020. Its performance in the first half of 2022 was the worst since the first six months of 1970.

The S&P 500 has been in a bear market since last month, meaning an extended decline of 20% or more from its most recent peak. It’s now down 21% from the peak it set at the beginning of this year.

The market’s deep slump this year reflects investors’ anxiety over surging inflation and the possibility that higher interest rates could bring on a recession.


Traders work on the floor at the New York Stock Exchange in New York, Friday, July 1, 2022. Stocks are off to a weak start on Friday, continuing a dismal streak that pushed Wall Street into a bear market last month as traders worry that inflation will be tough to beat and that a recession could be on the way as well. (AP Photo/Seth Wenig)

Traders work on the floor at the New York Stock Exchange in New York, Friday, July 1, 2022. Stocks are off to a weak start on Friday, continuing a dismal streak that pushed Wall Street into a bear market last month as traders worry that inflation will be tough to beat and that a recession could be on the way as well. (AP Photo/Seth Wenig)

“What we’re seeing today is reflective of really what we’re going to see here in July, which is continued pressure on the markets, unless we see outsized economic reports on jobs or inflation, or some more meaningful change in Fed policy,” said Greg Bassuk, CEO at AXS Investments.

Bond yields fell significantly. The yield on the 10-year Treasury, which helps set mortgage rates, fell to 2.89% from 2.97% last Thursday. The yield on the 2-year Treasury slipped to 2.83% from 2.92%.

The market’s latest gyrations precede a long holiday weekend. Financial markets in the U.S. will be closed on Monday for Independence Day.

Wall Street remains concerned about the risk of a recession as economic growth slows and the Federal Reserve aggressively hikes interest rates. The Fed is raising rates to purposefully slow economic growth to help cool inflation, but could potentially go too far and bring on a recession.

Economic data over the last few weeks has shown that inflation remains hot and the economy is slowing. The latter has raised hopes on Wall Street that the Fed will eventually ease off its aggressive push to raise rates, which have been weighing on stocks, especially pricier sectors like technology. Analysts don’t expect much of a rally for stocks until there are solid signs that inflation is cooling.

The latest economic update on Friday for the manufacturing sector shows a continued slowdown in growth in June that was sharper than economists expected. On Thursday, a report showed that a measure of inflation that is closely tracked by the Fed rose 6.3% in May from a year earlier, unchanged from its level in April.

Earlier this week, a worrisome report showed that consumer confidence slipped to its lowest level in 16 months. The government has also reported that the U.S. economy shrank at an annual rate of 1.6% in the first quarter and weak consumer spending was a key part of that contraction.

Kohl’s dove 16.9% after the department store’s potential sale fell apart amid the shaky retail environment as consumers lose confidence and cut spending. Kohl’s had entered exclusive talks with Franchise Group, the owner of Vitamin Shop and other retail outlets, for a deal that was potentially worth about $8 billion.

Other retailers, restaurant chains and companies that rely on direct consumer spending helped lift the market. Amazon rose 3%, Home Depot gained 1.8% and Starbucks rose 3.7%.

Banks also notched gains. Wells Fargo rose 2.1%.

Technology stocks recovered some of their losses from earlier in the day, though some big names remained in the red. Chipmaker Micron shed 3.1% after giving investors a disappointing profit forecast amid concerns about falling demand. That weighed heavily on other chipmakers. Nvidia fell 4.1%.



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