Stocks make gains, oil prices rise as OPEC ramps up production | Economic news
By DAMIAN J. TROISE, AP Business Writer
NEW YORK (AP) — Stocks rose Thursday afternoon on Wall Street but remained choppy amid mistrust of economic growth and rising interest rates.
The S&P 500 was up 0.7% at 12:11 a.m. EST. The Dow Jones Industrial Average rose 76 points, or 0.2%, to 32,890 and the Nasdaq rose 1.4%.
Tech stocks, whose high values tend to give the broader market a bigger push up or down, shook off an early stumble and gained ground. Chipmaker Nvidia jumped 5.6% and software maker Adobe rose 2.6%.
Companies that depend on direct consumer spending and some large industrial companies have gained ground. Expedia Group rose 1.9% and Boeing 3.6%.
Small business stocks rose, signaling confidence in economic growth. The Russell 2000 gained 1.4%.
Bond yields have been relatively stable. The 10-year Treasury yield, which helps set interest rates on mortgages and other loans, fell to 2.92% from 2.93% late Wednesday.
Health care companies and utilities fell. Drug developer Eli Lilly fell 3%.
U.S. crude oil prices rose 1.4%, despite the OPEC oil cartel and allied producing nations including Russia saying they would increase production by 648,000 barrels a day in July and August .
Rising energy prices have fueled inflation, which is already at its highest level in four decades. U.S. gasoline prices hit a new record high on Thursday, with the average price at the pump costing $4.71 a gallon, according to the AAA Auto Club Federation.
Investors remain focused on the balance between inflation, rising interest rates and economic growth. The Federal Reserve is being closely watched as it attempts to blunt the impact of inflation by raising interest rates from historic lows during the pandemic.
Several economic reports released on Wednesday reinforced expectations that the Fed would continue to aggressively raise interest rates. Wall Street fears the Fed is slowing economic growth too much and potentially sending the economy into recession.
At the same time, high inflation is eating away at corporate earnings, while the war in Ukraine and COVID-19 restrictions in China have also weighed on markets.
Investors continue to monitor corporate results and financial updates. Microsoft fell 1.5% after slashing its financial forecast for the current quarter, citing unfavorable movements in exchange rates. Online pet store Chewy rose 19% after posting strong profits.
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