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U.S. Stocks Give Up Early Gains as Fed Begins 2-Day Meeting

Published 06/14/2022, 09:57 AM
Updated 06/14/2022, 10:01 AM
© Reuters

By Liz Moyer -- U.S. stocks gave up early gains as investors tried to turn positive a day before the decision after the Federal Reserve’s closely watched June policy meeting.

At 10:28 AM ET, the Dow Jones Industrial Average was down 31 points or 0.1%, while the S&P 500 was down 0.1% and the NASDAQ Composite was down 0.1%. All three indexes had opened higher.

Amid Monday’s market rout, analysts started to speculate whether the Fed would take a more aggressive three-quarter-percentage point increase in its benchmark rate in response to red-hot inflation. The Fed's two-day meeting begins today and concludes with their decision tomorrow.

The S&P entered bear market territory, closing 21% below the record it set in January. That’s the first time the large-cap index entered a bear market since March 2020 at the start of the pandemic in the U.S. The tech sector is already there, with the Nasdaq down 33% since its recent peak.

Already investors are worried about the prospect of a recession – and whether the Fed would move so aggressively it would tip the economy into a downturn. On Tuesday, the crypto exchange operator Coinbase Global Inc (NASDAQ:COIN) said it was laying off 18% of its workers in preparation for a recession. Its shares fell 5%.

Producer prices for May gave an initial bounce to stocks. Overall, the index rose 0.8% from April and core PPI, which removes volatile energy and food prices, rose 0.5%. The expectation was for core prices to rise 0.6%. March's increases were revised down to 0.4% from 0.5% for the overall index and to 0.2% from 0.4% for the core index. 

Oracle Corporation (NYSE:ORCL) shares rose 7.8% after the cloud software provider reported better than expected revenue and profit and projected 30% growth for its cloud business in its 2023 fiscal year.

Continental Resources Inc (NYSE:CLR) shares jumped 14.3% after its Chairman Harold Hamm and his family offered $70 a share for the stock they don’t already own. Hamm already has about 83% ownership. The offer for the shale producer is valued at roughly $25 billion.

Oil rose. WTI was up 2%, to $123.45 a barrel, while Brent crude rose 2% to $125 a barrel. Gold fell 0.8%, to $1817 an ounce.

Latest comments

Wal-Mart visit yesterday all shelves filled to the top overstock in groceries. no pandemic shortages in site. Really it's about greed and larger profits that's driving cost up and as far as inflation stop talking about and guessing and rumors of the Fed doing this and that..that is what hurting the stocks the most.
0.5% hike will not be enough. Panic selling will ensue. 0.75% hike will be too much. Panic selling will ensue.
This ☝️
Nailed it.
The reliable and predictable titanium floor at the break-even point.  What a flagrantly manipulated joke.
🥱 every day the same: up is a joke, down is a joke, sideways is a joke.
Not any NKVD and Putin lover to comment on this?where are you little red worriors?
Did you read the article the right way? What does it metter with Putin? your president is dragging you to ******** Two days Fed mitting remind me something happened in 2008... Is that really Putin fault? BTW I am ukrainian,so  befor you start to acuse me being pro putin think twice, but that doesn't mean that I don't have to judge the global situation objectively. Cheers.
see, now you have one and directly from the Putin's den
see, now you have one and directly from the Putin's den
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