Wall Street starts the week on a bright note

Wall Street stocks rebounded from early losses and rose in Monday afternoon trade as investors remain focused on the economy and several updates from retailers this week.

The S&P 500 is up 0.4 percent in late trade. The benchmark index is up for four straight weeks, up 13 percent so far in the third quarter, though it’s still lower for the year.

Wall Street is higher across the board on Monday.

Wall Street is higher across the board on Monday.Recognition:Bloomberg

The Dow Jones Industrial Average is up 0.4 percent and the Nasdaq is up 0.6 percent. The Australian stock market is expected to start the session in positive territory, with futures pointing to a rise of 25 points or 0.4 percent on the open at 5.01am AEST. On Monday, the ASX closed 0.5 percent higher with technology stocks taking the lead.

Smaller company shares fell slightly on Wall Street, dragging the Russell 2000 Index down 0.2 percent.

All but two of the 11 sectors in the S&P 500 were higher in afternoon trade, led by technology stocks. Retailers and other businesses that rely on direct consumer spending also rose. Visa was up 2.4 percent and Costco was up 1.4 percent.

Moderna rose 3.2 percent after UK regulators approved an updated version of its COVID-19 vaccine.

The market got off to a rocky start as traders reacted overnight to news that the People’s Bank of China had cut interest rates and acknowledged that more needs to be done to support the economy. The move is the latest warning for markets already nervous about record high inflation and fears of recession in the US and elsewhere.

China is the world’s second largest consumer of crude oil, so the news weighed on energy prices. US crude prices fell 3.3 percent on worries about the global economy, weighing heavily on energy stocks. Chevron fell 2 percent.

Treasury yields fell after a report showed that New York state manufacturing contracted unexpectedly. The yield on the 10-year government bond, which banks use to set mortgage rates, fell to 2.78 percent from 2.83 percent late Friday.

https://www.smh.com.au/business/markets/asx-set-to-open-higher-as-wall-street-rises-oil-prices-slide-20220816-p5ba3o.html?ref=rss&utm_medium=rss&utm_source=rss_business Wall Street starts the week on a bright note

Brian Lowry

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