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People walk along a Wall Street sign in New York on June 16, 2022. — AFP pic

Thursday, 23 Jun 2022 11:23 PM MYT

NEW YORK, June 23 — Wall Street stocks opened higher today as investors weighed recession worries against its bargain-hunting inclinations as markets hope for a rebound from recent losses.

Stocks rallied Tuesday and held most of those gains yesterday in a choppy session that ended modestly lower. Major indices have fallen throughout 2022 as the Federal Reserve hikes interest rates aggressively in its battle to quell surging inflation.

Fed Chair Jerome Powell told a Senate panel yesterday that the US economy remains on solid ground, but acknowledged there is a risk of recession amid higher interest rates.

“Powell was very candid. He basically said we are going to do everything to fight inflation and he said the consequence is maybe a recession,” said Peter Cardillo of Spartan Capital.

“But the market was taking that pretty much in a stride because a lot of that is already discounted in the market.” About 20 minutes into trading, the Dow Jones Industrial Average was up 0.5 per cent at 30,636.40.

The broad-based S&P 500 gained 0.4 per cent to 3,774.64, while the tech-rich Nasdaq Composite Index advanced 0.3 per cent to 11,085.21.

Powell was due for a second round of testimony later Thursday on Capitol Hill, speaking to a House Committee in his semi-annual appearance. — AFP