NEW YORK ( Associated Press) — The stock market shook off a start Thursday and ended broadly higher on Thursday, marking its first gains in this holiday-shortened week. Technology stocks were among the winners as Microsoft wiped out early losses. Business has been choppy in recent days as investors remain concerned about inflation and interest rate hikes that the Federal Reserve is using to fight it. The S&P 500 rose 1.8%. The benchmark index is up 7.1% since hitting the edge of a bear market two weeks ago. The Dow Jones Industrial Average rose 1.3% and the Nasdaq 2.7%. The yield on the 10-year Treasury slipped to 2.91%.
This is a breaking news update. Below is an earlier story from Associated Press.
NEW YORK ( Associated Press) – Stocks on Wall Street are retracing some of their recent losses in afternoon trading on Thursday, despite continuing warnings among investors about stubbornly high inflation and rising interest rates.
The S&P 500 was up 1.4% as of 2:47 p.m. Eastern, but all but two of the 11 sectors of the benchmark index were trading higher. The Dow Jones Industrial Average was up 292 points, or 0.9%, at 33,106, while the Nasdaq was up 2.4%.
Technology stocks, whose higher prices push the broader market higher or lower harder, shrugged off early stumbling blocks, accounting for a large portion of the rally. Chipmaker Nvidia jumped 6.8% and software maker Adobe 5.3%.
Communications stocks, companies relying on direct consumer spending and some large industrial firms gained ground. Facebook parent meta platforms rose 6%, Expedia Group 6.1% and Boeing 7.1%.
Shares of smaller companies rose, indicating confidence in economic growth. The Russell 2000 rose 2.1%.
Bond yields remained relatively stable. Yield on 10-year Treasury, which helps determine interest rates on mortgages and other loans, fell to 2.91% from 2.93% since late Wednesday.
Utilities and energy stocks declined. Alliant Energy dropped 1.8% and Chevron 0.9%
Energy stocks fell as US crude prices rose 1.4%, despite the OPEC oil cartel and allied producing countries including Russia saying they would increase output. 648,000 barrels per day in July and August.
Rising energy prices are feeding inflation, which is already at its highest level in four decades. US petrol prices hit another record high on Thursday, with the average price at the pump at $4.71 a gallon, according to the Motoring Club Federation AAA.
Investors focus on the balance between inflation, rising interest rates and economic growth. The Federal Reserve is being closely watched as it tries to cushion the impact of inflation by raising interest rates from historic lows during the pandemic.
Several economic reports on Wednesday bolstered hopes for the Fed to aggressively raise interest rates. Wall Street is concerned that the Fed could greatly slow economic growth and potentially send the economy into recession.
Wall Street will get another glimpse into the health of the broader economy on Friday when the Labor Department releases its employment report for May. The jobs market was initially slow to recover from the effects of the virus pandemic, but has made a strong comeback with low unemployment and plentiful job postings.,
Meanwhile high inflation is eating into corporate profits, while the war in Ukraine and COVID-19 restrictions in China Markets have also been affected.
Investors continue to monitor corporate earnings and financial updates. Microsoft rose 0.3%, recovering from an early slide, after cutting its financial forecasts for the current quarter. The software pioneer cited unfavorable changes in exchange rates. Online pet store Chewy rose 22.5% after reporting strong earnings.
Vega reported from Los Angeles.