US stocks trade higher to open the month as investors assess impact of Fed tightening on inflation

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US stocks trade higher to open the month as investors assess impact of Fed tightening on inflation
Traders work on the floor of the New York Stock Exchange (NYSE)Spencer Platt/Getty Images
  • US stocks kicked off June with a rally as investors monitor the potential easing of inflationary pressures.
  • Oil prices fell briefly as OPEC considers excluding Russia from its production count, which would pave the way for a boost in supply.
  • Wheat prices also moved lower after reports that Russia may lift its blockade of Black Sea ports in exchange for the removal of sanctions.
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US stocks traded higher on Wednesday, extending its week-long rally into June as investors monitor the potential easing of inflationary pressures.

Fed tightening actions have led to a slowdown in certain sectors like the housing market, while independent actions by OPEC and Russia led to a swift decline in oil and grain prices on Tuesday. OPEC is considering excluding Russia from its supply count, which would pave the way for a boost in oil production and supply.

Additionally, Russia is reportedly considering a lift of its blockade of Black Sea ports in exchange for the removal of sanctions. That consideration led to a sharp decline in wheat prices on Tuesday.

Finally, Shanghai is opening back up after its two-month long lockdown due to the spread of COVID-19. The reopening of China could help improve supply chain logjams and help prices trend lower instead of higher.

Here's where US indexes stood shortly after the 9:30 a.m. ET open on Wednesday:

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US Treasury Secretary Janet Yellen admitted that she "was wrong" about how big of a risk inflation was in the aftermath of the COVID-19 pandemic. Now Yellen's top priority, along with President Joe Biden's and Fed Chairman Jerome Powell's, is to tame inflationary pressures.

Salesforce shares spiked 10% on Wednesday after the company reported better-than-feared first-quarter earnings. The results could lead to a broader tech rally, Wedbush argued, as it may calm fears about a broad slowdown in enterprise cloud spending.

Oil prices initially fell on the OPEC report but later rebounded. West Texas Intermediate crude oil rose as much as much as 1.81% to $116.75 per barrel. Brent crude, oil's international benchmark, rose as much as 1.88% to $117.77.

Bitcoin jumped 0.74% to $31,833 . Ether prices rose 1.89% to $1,965.

Gold rose as much as 0.05% to $1,849.90 per ounce. The yield on the 10-year Treasury rose 2 basis points to 2.86%.

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