Stocks moved between gains and losses during the morning
trade on Wall Street Wednesday, keeping the market on track for its fourth
monthly loss this year.
The S&P 500 was down 8.56 points or 0.22% to 3,812.99
as of 10.19 a.m. Eastern time zone. The benchmark index has been volatile all
week and is down 20% for the year as investors remained concerned about
inflation and rising interest rate.
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The Dow Jones Industrial Average rose 23.00 points or
0.074% to 30,969.99. The Nasdaq fell 46.19 points or 0.41% to 11,135.35.
Bed Bath and Beyond slumped 21% after reporting a
wider-than-expected loss and replacing its CEO. The yield on the 10-year
Treasury note fell to 3.13%.
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The government said that the economy shrank at a 1.6%
annual pace in the first three months of the year, its third and final estimate
for GDP in the first three months of 2022. That data was in line with previous
estimates, and economists expect growth to resume later this year.
Investors have been closely reviewing economic data as they
try to determine how deeply inflation is affecting consumers and businesses,
while also watching the Federal Reserve’s aggressive shift to raise interest
rates.
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The Federal Reserve is raising interest rates in a bid to
slow economic growth enough to temper inflation, but Wall Street is wary that
the Fed could go too far and push the economy into a recession. Those worries
have been increased by a series of reports showing a slowdown in retail sales
and other indicators.
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Persisting supply chain issues and a sharp jump in demand
as the pandemic faded sparked a rise in inflation. It has grown worse through
the year as supply problems worsened amid new lockdowns in China to help
control COVID-19 cases. The Russia-Ukraine war has sent energy prices higher
and resulted in record-high gasoline prices that have been eating away at
consumers’ pockets.
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Consumers have shifted spending from discretionary items
like electronics to necessities as inflation rises to an all-time high. The
weaker-than-expected consumer confidence reading on Tuesday showed that
persistently high inflation was making Americans more pessimistic about both
the present and future.
The impact of the shift in consumer spending is a key
concern for investors as companies start to report their latest financial
results. General Mills surged 5.2% after reporting strong financial results and
giving investors an encouraging forecast.
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Health care firms gained ground. Pfizer added 1%.
Industrial companies and retailers fell. FedEx slipped 4% and Target fell 1.4%.
The yield on the 10-year Treasury declined to 3.13% from
3.20% late Tuesday.