U.S. Stocks Rise as Investors Try to Break Losing Streak
By Liz Moyer
Investing.com — U.S. stocks rose after a sell-off on Monday that sent the Dow into bear market territory as investors worry about the risk of recession.
At 10:19 ET (14:19 GMT), the Dow Jones Industrial Average was up 173 points or 0.6%, while the S&P 500 was up 0.8% and the NASDAQ Composite was up 1.3%.
Investors have been worried about the pace of interest rate hikes by the Federal Reserve, which is determined to tame inflation despite the risks that poses. Three successive 0.75-percentage-point increases have sparked a stampede away from risky assets and sent the dollar soaring.
The odds are putting it at a 72% probability of another 0.75-point move at the Fed’s November meeting, Reuters reported.
The rising dollar is vexing other currencies. Britain’s pound fell below $104 on Monday before ticking higher as investors were skeptical about the new prime minister’s tax cuts. Late Monday, the Bank of England said it wouldn’t hesitate to act on rates.
U.S. home prices fell in July for the first time in two years as rising borrowing costs and shrinking confidence caused would-be buyers to hold back. But new home sales in August were 685,000 on an annualized basis, beating expectations, and the reading on consumer confidence was 108, higher than the 104.5 expected.
The national index of housing prices compiled by the Federal Housing Finance Agency fell 0.6%, its first monthly decline since May 2020. S&P Global said house prices fell 0.4%, the first monthly decline since 2017.
Shares of Hertz Global Holdings Inc (NASDAQ:HTZ) rose 6% after it announced a plan with BP (NYSE:BP) to build a national network of electric vehicle charging stations.
Oil rose. Crude Oil WTI Futures was up 2.8%, to $78.88 a barrel, while Brent Oil Futures crude was up 3%, to $85.30 a barrel. Gold Futures rose 0.6%, to $1643.
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