U.S. stocks are extending weekly gains, rebounding from yesterday afternoon's slide as the markets remain choppy amid lingering global recession concerns that have been bolstered by monetary policy tightening efforts around the globe aimed at getting high inflation under control. The markets have showed some resiliency this week and appear to be taking in stride Jerome Powell's second day of Congressional testimony in which he continues to signal further aggressive action is in the offing to restore price stability. The economic calendar showed jobless claims moderated but still above recent lows, and June business activity posted the weakest growth since January. Treasuries are trading higher with yields continuing to fall, and the U.S. dollar is rebounding from this week's decline. Crude oil prices are lower and gold is trading higher. In equity news, KB Home topped earnings estimates, while Darden Restaurants issued a mixed outlook, and Accenture offered disappointing guidance. Asia finished mostly higher and Europe is lower, with the global markets grappling with the recession concerns and digesting manufacturing and services sector reports around the world.
At 10:58 a.m. ET, the Dow Jones Industrial Average is up 0.6%, the S&P 500 is gaining 0.8%, and the Nasdaq Composite is advancing 1.4%. WTI crude oil is declining $0.51 to $105.68 per barrel, and Brent crude oil is dropping $1.36 at $107.29 per barrel. The gold spot price is rising $4.40 to $1,842.80 per ounce, and the Dollar Index is increasing 0.2% to 104.35.
Volatility in the equity markets remains after yesterday's failed attempt to extend Tuesday's gains, with the the S&P 500, NASDAQ and Russell 2000 continuing to trade in bear market territory. Inflation continues to be the chief concern for the Fed, forcing the Central Bank to get more aggressive with its monetary policy and last week it raised the target for the fed funds rate by 75 basis points (bps) and suggested more hikes of that magnitude could come as discussed by Schwab's Chief Investment Strategist Liz Ann Sonders in her article, Fed Goes for Inflation's Jugular With 75bps Rate Hike. Liz Ann examines the rate hike and how the Fed vowed to forcefully tackle inflation, while conceding the path to a soft landing has become "more challenging." Recession chatter has picked up as a result, contributing to the market volatility.
Amid this market backdrop, Liz Ann notes in her article, Panic Is Not a Strategy—Nor Is Greed, how disciplined investing helps investors navigate through volatile environments.