U.S. stocks rise as traders weigh earnings, Fed outlook

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Stocks retreated as traders assessed the outlook for corporate earnings and Federal Reserve policy amid the looming threat of a recession.

The S&P 500 erased gains, while the technology-heavy Nasdaq 100 underperformed. Treasury 10-year yields topped 2.8 per cent and a dollar gauge slipped. 

Investors are betting on another Fed hike of at least 75 basis points this week, which will probably inflict more pain on the economy as officials try to get inflation under control. The decision, along with earnings from the likes of Google’s parent Alphabet Inc. and Apple Inc., will help clarify the outlook for a sustained rebound in stocks.

“We don’t think that this bear market is going to end until there’s some evidence of nearing a bottoming of economic data or a pivot by the Fed toward a more dovish stance,” Nadia Lovell, UBS Global Wealth Management senior US equity strategist, said on Bloomberg Radio.

Elsewhere, wheat climbed as commodity markets evaluated a Russian missile strike on Odesa’s sea port that threatened to test a fledgling agreement to unblock Ukrainian grain exports from the Black Sea.

Here are some key events to watch this week:

  • Alphabet, Apple, Amazon, Microsoft, Meta earnings due this week
  • Bank of Japan minutes, Tuesday
  • IMF’s world economic outlook update, Tuesday
  • EU energy ministers emergency meeting, Tuesday
  • Fed policy decision, briefing, Wednesday
  • Australia CPI, Wednesday
  • US GDP, Thursday
  • Euro-area CPI, Friday
  • US consumer income, University of Michigan consumer sentiment, Friday

Some of the main moves in markets:

Stocks

  • The S&P 500 fell 0.2 per cent as of 10:28 a.m. New York time
  • The Nasdaq 100 fell 0.9 per cent
  • The Dow Jones Industrial Average was little changed
  • The Stoxx Europe 600 was little changed
  • The MSCI World index fell 0.3 per cent

Currencies

  • The Bloomberg Dollar Spot Index fell 0.2 per cent
  • The euro rose 0.2 per cent to US$1.0230
  • The British pound rose 0.5 per cent to US$1.2060
  • The Japanese yen fell 0.2 per cent to 136.45 per dollar

Bonds

  • The yield on 10-year Treasuries advanced six basis points to 2.81 per cent
  • Germany’s 10-year yield advanced two basis points to 1.05 per cent
  • Britain’s 10-year yield was little changed at 1.94 per cent

Commodities

  • West Texas Intermediate crude rose 1.1 per cent to US$95.78 a barrel
  • Gold futures fell 0.6 per cent to US$1,734.60 an ounce