US Stocks Turn Higher Wednesday 05/25 10:32
Stocks shook off some early weakness and turned tentatively higher
Wednesday, led by gains in store operators and other retailers.
NEW YORK (AP) -- Stocks shook off some early weakness and turned tentatively
higher Wednesday, led by gains in store operators and other retailers.
Retailers had been beaten down in recent days over concerns that soaring
inflation was eating into their profits. Some of those concerns dissipated
after the high-end department store operator Nordtrom reported higher sales and
raise it profit forecast.
The S&P 500 rose 0.8% as of 10:30 a.m. Eastern . A modest turn higher in the
volatile technology sector helped push the Nasdaq up 1.2%, erasing its loss for
the week. The Dow Jones Industrial Average rose 24 points, or 0.1%, to 31,953.
The yield on the 10-year Treasury note, which helps set mortgage rates, held
steady at 2.76%.
The broader market remains volatile with investors on edge because of rising
inflation and its impact on businesses and consumers. Investors are also
concerned about the Federal Reserve's aggressive plan to raise interest rates
to fight inflation and hope the Fed won't act so aggressively to slow the
economy as to cause a recession.
The Fed releases the minutes on Wednesday from its most recent policy
meeting, potentially offering more insight into the reasons behind its actions
The S&P 500 gained ground on Monday, but slipped again on Tuesday as
warnings from big retailers about inflation piled up. That has been a key
concern throughout the latest corporate earnings season and has kept major
indexes in a slump. The S&P 500 is coming off of a seven-week losing streak.
European markets were higher and Asian markets closed mostly higher.
Russia's invasion of Ukraine in February added even more pressure to already
rising energy costs, making inflation worse for both businesses and consumers.
Supply chains became even tighter over the last month as China locked down
several major cities to fight rising cases of COVID-19.
Also on Wednesday, there was an increasingly downcast view of the months
ahead from corporate leaders, government officials and other VIPs gathered at
the World Economic Forum's annual meeting in Davos, Switzerland.