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Stocks Give Up Gains as Recession Fears Rise Again

Published 06/23/2022, 01:19 PM
Updated 06/23/2022, 01:31 PM
© Reuters.

© Reuters.

By Liz Moyer

Investing.com -- U.S. stocks were mixed after Federal Reserve Chair Jerome Powell wrapped up his two-day semiannual testimony on Capitol Hill, telling lawmakers about the state of the economy and answering questions about inflation and central bank policy.

At 1:25 PM ET the Dow Jones Industrial Average was down 100 points or 0.3%, while the S&P 500 was down 0.1% and the NASDAQ Composite was up 0.3%.

Stocks closed Wednesday on a sour note after Powell told lawmakers in the Senate a recession was possible but that the central bank was “strongly committed” to taming inflation using interest rate hikes. He also said the economy was strong enough to endure multiple rate increases.

UBS joined Goldman Sachs and Citigroup in raising the odds of a recession at some point in the next year. The Swiss banking company put the odds at 69%.

Shares of home builder KB Home (NYSE:KBH) rose more than 8% after it renewed its outlook for the year despite saying it sees the housing market moderating this year. 

Funko Inc (NASDAQ:FNKO) shares rose 11% after an upgrade from JPMorgan to overweight. The analysts called the toy industry a safe haven in the current market.

Darden Restaurants Inc (NYSE:DRI) shares fell 0.1% even after it reported profit of $2.24 a share on revenue of $2.6 billion, both beating expectations

Shares of Occidental Petroleum Corporation (NYSE:OXY) fell 0.2% after Warren Buffett’s conglomerate Berkshire Hathaway (NYSE:BRKa) disclosed it bought more than $500 million of shares to raise its stake to 16.3%.

Oil couldn't hold onto earlier gains. Crude Oil WTI Futures fell more than 1% to under $105 a barrel, while Brent Oil Futures fell 1% to $110 a barrel. Gold Futures fell 0.5% to $1,829.

Latest comments

mitchel, if you're an investor may be cash is the safest place for you to park your investment capital .
poor mitch, he can't seem to get it right...
seasonality suggests a rally into the 4 of July weekend.... still in a bear market the surprises are always on the down side.....
wanna rewrite this morons...
when you hold the graph upsidedown and you are colour blind, then this article makes sense
What a surprise, the US Ponzi Scheme is green "in late trade."  Criminally manipulated, predictable joke.
the bottom was in last Friday stop crying
  Mitch was crying going into last Friday, too
mitch are you ever going to figure it out...
Mitchel,these moves are predictable for most market traders. you're becoming the laughing stock of the trading world....
Mitchel is an investor not a trader lol.
Another magic show in the laughingstock of the investing world.
go away...no one cares
if know 1 cares, Why are you Responding. Michaels just having Fun.
Those pesky "recession fears", tamped down in the AM, "rising again" in the PM.  They're regular little prairie dogs
Ready to buyback SPY when SP500 is 2700-2900.
Sounds like a good targey
we have already reached the bottom last Friday
recession, inflation, covid blahblahblah
rate hikes & Russia's invasion, what else to spin?
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