Stocks falter amid fresh economic warnings: Stock market news today

U.S. stocks faltered midday on Wednesday after an unexpected rise in interest rates from Canada, a surprise drop in Chinese exports and economic headwinds reported by the Paris-based Organization for Economic Co-operation and Development (OECD), fueled new concerns about global growth.

The S&P 500 (^GSPC) slipped 0.29%, while the Dow Jones Industrial Average (^DJI) gained 0.18%, less than 100 points. The tech-heavy Nasdaq Composite (^IXIC) fell 0.94% at 12:25 p.m. ET.

The Bank of Canada raised its key rate by 25 basis points on Wednesday, ending its three-month pause on increases, while the Canadian economy is too hot.

Official trade data released on Wednesday added to worries about the post-pandemic recovery in the world’s second-largest economy, which weighed on global markets. Chinese exports fell 7.5% from a year ago in May, while economists had expected a 0.4% decline.

“The weakening of global trade is not a new story, but it is surprising how quickly China’s reopening momentum has faded, with backlogs supporting export figures until ‘Now, even though 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 waning so quickly, pressure is likely to mount on leaders to announce further stimulus in a bid to revitalize the economy once again,” added the analyst.

As the OECD raised its global growth forecast for 2023 slightly to 2.7% in its latest economic outlook on Wednesday, the group identified potential headwinds to the future recovery as inflation persists and inflation rises. interest rates weigh.

Meanwhile, investors are watching closely whether the S&P 500 will enter a new bull market.

Treasury yields rose after the US Treasury said it planned to increase the size of its upcoming bill sales, putting pressure on short-term bonds. The yield on the two-year yield rose to 4.59%, while that on the benchmark 10-year US Treasury note traded at 3.78%.

Separately, on the housing front, mortgage applications for home purchases nearly hit a 30-year low in May as another rise in mortgage rates dampened demand, the Bank reported on Wednesday. Mortgage Bankers Association.

Elsewhere, the Securities and Exchange Commission’s increased crackdown remained a focus for investors, after the regulator filed lawsuits against major cryptocurrency exchanges Coinbase (COIN) and Binance. The price of Bitcoin (BTC-USD) was trading below $27,000 early Wednesday.

In single stock moves, shares of Tesla (TSLA) soared more than 1% following news that the Environmental Protection Agency would exclude electric vehicle makers from the standard on renewable fuels, Reuters reported.

Shares of United Natural Foods Inc. (UNFI) fell more than 16% after the grocery wholesaler posted third-quarter earnings that fell short of expectations while trimming its full-year outlook. Meanwhile, shares of Campbell Soup (CPB) fell 6% after the food company provided earnings forecasts that fell below Wall Street expectations.

Shares of Netflix (NFLX) jumped more than 1% after JPMorgan analysts estimated the streaming giant’s password crackdown will generate nearly $6 billion in additional revenue in 2024 and 2025. of Affirm Holdings, Inc. (AFRM) added more than 10% after the company announced a partnership with Amazon (AMZN) Pay.

Next on the earnings register includes GameStop (GME), which is expected to report earnings after markets close on Wednesday. Shares rose more than 4% in early trading.

Dani Romero is a reporter for Yahoo Finance. Follow her on Twitter @daniromerotv

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