Stocks traded between small gains and losses in morning
trading on Wall Street Wednesday as concerns about inflation, soaring interest
rates, and a potential recession weigh on the broader market.

The S&P 500 fell 9.86 points or 0.26% as of 10:19 a.m.
Eastern time zone. The Dow Jones Industrial Average fell 69.79 points or 0.23%
to 30,898.03. The Nasdaq composite fell 31.51 points or 0.28% to 11,290.73.

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Benchmark indexes have been swinging between sharp losses
and gains on a daily basis, and sometimes hourly basis. Though, the broader
market is still under a deep slump that has dragged the S&P into a bear
market, over 20% below its recent peak.

Wall Street’s major concerns are focused on the Federal
Reserve’s effort to rein in inflation, and the risk its plan could send the
economy into a recession.

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Inflation has severely impacted businesses and consumers
throughout the year, tightening its grip following Russia’s invasion of Ukraine
in February. Oil prices rose because of the invasion and sent gasoline prices
in the US to record highs. US crude oil prices are high at 30% for the year,
though they have fallen this week. On Tuesday, oil prices closed below $100 per
barrel for the first time since early May.

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Supply chain issues persist and have been made worse by
shutdowns in China due to the resurgence of the COVID-19 cases.

Central banks have been increasing interest rates in a bid
to curb inflation. The Fed has been particularly aggressive in its shift from
the historically low-interest rate at the peak of the pandemic to unusually big
rate hikes now. That has increased worries that the central bank could go too
far, hitting the brakes too hard on economic growth and bringing on a recession.

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Investors will get another update on the Fed’s latest
thinking this afternoon when the central bank releases minutes from its latest
meeting.

Wall Street is closely watching economic data for clues
regarding inflation’s impact, its trajectory, and what that means for the Fed’s
position moving forward. The US government will release employment data for
June on Friday.

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European markets were trading significantly higher. The
euro is at a 20-year low to the dollar on concerns over disruptions to energy
supplies. European Commission chief Ursula von der Leyen said the 27-nation
European Union needs to make emergency plans to prepare for a complete cut-off
of Russian gas amid the Kremlin’s war on Ukraine.