Late buying push pushes stock indexes up on Wall Street | national news

April 25, 2022

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NEW YORK (AP) — A late wave of buying left major indexes higher on Wall Street after another day of trading up and down. A rebound in tech stocks helped turn the tide in the final hour of trading on Monday. The S&P 500 closed 0.6% higher and the tech-heavy Nasdaq added 1.3%. Dow Jones industrials rose 0.7%. The S&P 500 is coming off a three-week losing streak amid concerns about high inflation and the rapid increase in interest rates the Federal Reserve is likely to prescribe for it. Bond prices have risen. The yield on the 10-year Treasury fell to 2.83%.

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

NEW YORK (AP) — Stocks on Wall Street erased their steep morning losses and are holding relatively steady on Monday, the latest in a string of upside trades.

The S&P 500 was virtually unchanged, as of 2:46 p.m. EST, coming back from an early loss of 1.7%. The Dow Jones Industrial Average rose 94 points, or 0.3%, to 33,905 after erasing an earlier loss of 488 points, and the Nasdaq composite rose 0.8%.

Stocks have been fragile recently, with the S&P 500 emerging from a three-week losing streak, amid concerns about high inflation and the rapid hike in interest rates the Federal Reserve is likely to prescribe. Strong earnings reports for the first three months of the year from major US corporations had offered some support, but even that looked less robust after several mixed forecasts last week.

Investors are now in the middle of one of the most important periods of earnings season. Apple, Microsoft, Amazon and the parents of Facebook and Google are all on deck to report this week. And because they are among the largest companies by market value, their movements have the most influence on the S&P 500.

Earlier in the morning, US stocks were on course to follow global markets lower, particularly in China, on fears that strict lockdown measures there could jeopardize the world’s second largest economy and potentially damage the global economic growth. Hong Kong’s Hang Seng fell 3.7%. The Shanghai Composite fell 5.1%.

China’s capital, Beijing, began mass testing of more than 3 million people on Monday and restricted residents of part of the city to their compounds, raising concerns about a broader lockdown similar to Shanghai. This city has been closed for more than two weeks and this has already prompted the International Monetary Fund to revise downwards its growth forecasts for the Chinese economy.

Prices for ultra-safe US government bonds rose as traders feared the risk. The 10-year Treasury yield, which affects rates on mortgages and other consumer loans, fell to 2.82% from 2.90% on Friday evening.

Energy companies were among the biggest losers as US crude oil prices fell 2.9%. Exxon Mobil fell 3.4%.

Banking and industrial stocks also fell. Bank of America fell 1.1% and Lockheed Martin 1%.

Communication actions were in the lead. Twitter jumped 6% after the social media company agreed to be taken private by Tesla CEO Elon Musk for $54.20 a share, or about $44 billion.

Rising inflation remains a major concern for investors. Investors continue to focus on the measures taken by central banks to contain it. The Federal Reserve Chairman indicated that the central bank may raise short-term interest rates to double the usual amount at upcoming meetings, starting next week. The Fed has already raised its overnight rate once, the first such hike since 2018.

Wall Street will also receive key economic data this week. The Conference Board will release its consumer confidence measure for April on Tuesday. The Commerce Department will release its first-quarter gross domestic product report on Thursday.

It’s also a busy week for US corporate earnings reports. Google’s parent company, Alphabet, and General Motors will release their results on Tuesday, along with Microsoft and Visa. Boeing, Ford and Facebook parent Meta are on deck to report results on Wednesday. McDonald’s, Amazon and Apple report Thursday.

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