Shares waver amid new economic warnings: Stock market news today
US stocks faltered in midday trading on Wednesday after an unexpected rate hike from Canada, a surprise drop in Chinese exports and economic headwinds flagged by the Paris-based Organization for Economic Co-operation and Development (OECD) raised fresh worries about global growth.
The S&P 500 (^GSPC) fell 0.29%, while the Dow Jones Industrial Average (^DJI) rose 0.18%, or less than 100 points. The tech-heavy Nasdaq Composite ( ^IXIC ) was down 0.94% at 12:25 PM ET.
The Bank of Canada raised its key interest rate by 25 basis points on Wednesday, ending a three-month hiatus of hikes as the Canadian economy overheats.
Official trade data released on Wednesday added to concerns about the post-pandemic recovery in the world̵[ads1]7;s second-largest economy, which has weighed on global markets. China’s exports fell 7.5% from a year ago in May, compared with economists’ expectations for a 0.4% decline.
“Weaker global trade is not a new story, but it is surprising how quickly China’s reopening push has slowed, with a backlog of work supporting export numbers until now, even as other countries have continued to see demand for their goods decline,” Craig Erlam, senior market analyst at Oanda, wrote in a note on Wednesday.
“With China’s reopening boom flagging so fast, pressure is set to intensify on the leadership to announce new stimulus measures in a bid to revitalize the economy again,” the analyst added.
While the OECD lifted its global growth forecast for 2023 slightly to 2.7% in its latest economic outlook on Wednesday, the group identified potential features for future recovery as inflation persists and interest rate hikes weigh.
Meanwhile, investors are watching closely to see if the S&P 500 will enter another bull market.
Treasury yields crept higher after the U.S. Treasury Department said it plans to increase the size of its upcoming bill sale, putting pressure on short-dated bonds. The yield on the two-year yield rose to 4.59%, while the yield on the 10-year US Treasury bond traded up to 3.78%.
Separately, on the housing front, mortgage applications for home purchases hit a near 30-year low in May as a renewed rise in mortgage rates dampened demand, the Mortgage Bankers Association reported Wednesday.
Elsewhere, the Securities and Exchange Commission’s stepped-up crackdown remained a focus for investors, after the regulator filed lawsuits against top cryptocurrency exchanges Coinbase (COIN) and Binance. Bitcoin’s price (BTC-USD) traded below $27,000 early Wednesday.
In individual stocks, shares of Tesla ( TSLA ) rose more than 1% on news that the Environmental Protection Agency would exclude electric car makers from the Renewable Fuels Standard, Reuters reported.
United Natural Foods Inc. ( UNFI ) shares fell more than 16% after the grocery wholesaler posted third-quarter earnings that fell short of expectations while cutting its full-year outlook. Meanwhile, shares of Campbell Soup ( CPB ) fell 6% after the food company provided earnings guidance below Wall Street expectations.
Shares of Netflix ( NFLX ) rose more than 1% after analysts at JPMorgan estimated the streaming giant’s password crackdown will generate close to $6 billion in additional revenue in 2024 and 2025. Affirm Holdings, Inc. ( AFRM ) shares rose more than 10 % after the company announced a partnership with Amazon (AMZN) Pay.
Next on the earnings docket includes GameStop ( GME ), which is set to report earnings after markets close on Wednesday. Shares rose more than 4% in early trading.
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Dani Romero is a reporter for Yahoo Finance. Follow her on Twitter @daniromerotv
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