Wall Street rebounds in the face of recession risks – 10.05.2022 at 22:53

Wall Street rebounds in the face of recession risks - 10.05.2022 at 22:53


Traders work on the New York Stock Exchange

NEW YORK (Reuters) – The New York stock market fell slightly on Wednesday as recession risks and the prospect of further interest rate hikes regained the lead in markets after a sharp start to the week.

The Dow Jones fell 0.14%, or 42.45 points, to 30,273.87.

The broader S&P-500 index fell 7.65 points, or 0.20%, to 3,783.28.

The Nasdaq Composite, in turn, fell by 27.77 points (-0.25%) to 11,148.64 points.

As investors worry about slowing economic growth, a gauge of US private sector job creation showed the sector remained upbeat, suggesting that interest rate hikes have yet to have a major impact on the labor market as the Federal Reserve works to contain inflation.

The private sector added 208,000 jobs in September, slightly more than economists had expected, according to ADP’s monthly survey.

The new data reinforces the prospect that the Fed will decide to raise key interest rates by another 75 basis points during its monetary policy meeting in early November.

San Francisco Fed President Mary Daley reiterated on Bloomberg TV on Wednesday that the central bank will not back down until inflation is under control.

“The path is clear: We’re going to move rates into restrictive territory and keep them there for a while,” she said.

In this context, the energy sector benefited from the decision by OPEC+ to cut production by two million barrels per day, the biggest drop since the crisis caused by the COVID-19 pandemic, due to a drop in global demand.

Twitter (-1.30%) , on the other hand, took a hit after surging 22% on Tuesday after relaunching Elon Musk’s $44 billion buyout offer. Tesla, led by a billionaire, lost 3.45%.

(Reporting by Herbert Lash, French version by Tangi Salaün)

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