Breaking News
Get Actionable Insights with InvestingPro+: Start 7 Day FREE Trial Register here
Investing Pro 0
Ad-Free Version. Upgrade your Investing.com experience. Save up to 40% More details

Stocks tumble after weak U.S. confidence data; oil gains

Economy Jun 28, 2022 22:35
Saved. See Saved Items.
This article has already been saved in your Saved Items
 
2/2 © Reuters. FILE PHOTO: A man wearing a protective mask, amid the coronavirus disease (COVID-19) outbreak, walks past an electronic board displaying graphs (top) of Nikkei index outside a brokerage in Tokyo, Japan, March 10, 2022. REUTERS/Kim Kyung-Hoon 2/2

By Caroline Valetkevitch

NEW YORK (Reuters) - Stocks on global indexes fell sharply on Tuesday, with the S&P 500 down 2% after a report showed U.S. consumer confidence dropped in June amid concerns about inflation, while oil prices gained for a third day.

Helping oil, major oil producers Saudi Arabia and the United Arab Emirates looked unlikely to be able to lift output much while Western governments agreed to look for ways to cap the price of Russian oil.

The Conference Board said Tuesday U.S. consumer confidence fell sharply in June as worries about high inflation left consumers anticipating economic growth would weaken significantly in the second half of the year.

Investors have been worried that an aggressive interest rate hike cycle by the U.S. Federal Reserve to tame inflation could tip the economy into recession.

All three major indexes ended well down on Wall Street, with every S&P 500 sector losing ground aside from energy.

Earlier in the session, news that China relaxed some COVID-19 quarantine rules helped lift stocks as investors hoped for a revival in global growth.

"It doesn't take much in terms of negativity to cause that profit-taking," said Tim Ghriskey, senior portfolio strategist at Ingalls & Snyder in New York.

"At some point this aggressive selling is going to dissipate, but it doesn't seem like it's going to be anytime soon," he said.

The Dow Jones Industrial Average fell 491.27 points, or 1.56%, to 30,946.99, the S&P 500 lost 78.56 points, or 2.01%, to 3,821.55 and the Nasdaq Composite dropped 343.01 points, or 2.98%, to 11,181.54.

The pan-European STOXX 600 index rose 0.27% and MSCI's gauge of stocks across the globe shed 1.28%.

China slashed the quarantine time for inbound travellers by half in a major easing of one of the world's strictest COVID-19 curbs, which have deterred cross-border travel and resulted in international flights running at just 2% of pre-pandemic levels.

Brent crude futures climbed $2.89, or 2.5%, to settle at $117.58 a barrel, while U.S. West Texas Intermediate crude settled up $2.19, or 2%, to $111.76.

In foreign exchange, the euro weakened after European Central Bank President Christine Lagarde offered no fresh insight into the central bank's policy outlook.

{{2126|The dodollar index rose 0.519%, with the euro down 0.61% to $1.0518.

U.S. Treasury yields were mostly flat following the consumer confidence report.

The yield on 10-year Treasury notes fell 0.2 basis points to 3.192%.

A closely watched part of the Treasury yield curve measuring the gap between yields on two- and 10-year notes, a sign of economic expectations, was at 6.6 basis points. The gap earlier briefly spiked down to -7.24 when New York trade opened.

Spot gold dropped 0.1% to $1,820.29 an ounce.

Bitcoin last fell 2.1% to $20,264.23.

Stocks tumble after weak U.S. confidence data; oil gains
 

Related Articles

Micron's warning of weak demand rattles chip stocks
Micron's warning of weak demand rattles chip stocks By Reuters - Aug 09, 2022

By Chavi Mehta (Reuters) - Micron Technology (NASDAQ:MU) cut its current-quarter revenue forecast on Tuesday and warned of a negative free cash flow in the coming three months as...

Add a Comment

Comment Guidelines

We encourage you to use comments to engage with users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind: 

  • Enrich the conversation
  • Stay focused and on track. Only post material that’s relevant to the topic being discussed.
  • Be respectful. Even negative opinions can be framed positively and diplomatically.
  •  Use standard writing style. Include punctuation and upper and lower cases.
  • NOTE: Spam and/or promotional messages and links within a comment will be removed
  • Avoid profanity, slander or personal attacks directed at an author or another user.
  • Don’t Monopolize the Conversation. We appreciate passion and conviction, but we also believe strongly in giving everyone a chance to air their thoughts. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
  • Only English comments will be allowed.

Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.

Write your thoughts here
 
Are you sure you want to delete this chart?
 
Post
Post also to:
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Thanks for your comment. Please note that all comments are pending until approved by our moderators. It may therefore take some time before it appears on our website.
 
Are you sure you want to delete this chart?
 
Post
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Add Chart to Comment
Confirm Block

Are you sure you want to block %USER_NAME%?

By doing so, you and %USER_NAME% will not be able to see any of each other's Investing.com's posts.

%USER_NAME% was successfully added to your Block List

Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.

Report this comment

I feel that this comment is:

Comment flagged

Thank You!

Your report has been sent to our moderators for review
Continue with Google
or
Sign up with Email