Tech helps stocks pare losses; Bonds rally - BNN Bloomberg

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U.S. stocks came off session lows, buoyed by gains in technology companies, though sentiment remains sour as recession fears continue to grip the market. Treasuries gained and oil tumbled.

US stocks came off session lows, buoyed by gains in technology companies, though sentiment remains sour as recession fears continue to grip the market. Treasuries gained and oil tumbled.

The dollar rose to its strongest level in more than two years, making commodities priced in the currency less attractive. West Texas Intermediate crude futures dropped the most since early March on concerns that a global slowdown will impact demand. Copper, which is considered an economic bellwether, fell to its lowest price in 19 months. Energy and mining stocks plunged as commodities declined, dragging the S&P 500 lower.

Investors continue to fret over a potential US recession and stubborn inflation despite talks of tariff reductions. US and Chinese officials held discussions after reports that Washington is close to rolling back some of the trade levies imposed by the former administration. Reducing tariffs on imported Chinese goods could impact consumer prices in the US, but some suggest that it would do little to cool inflation.

“If the Fed changes course now, they might as well pack their bags and turn the lights off,” Kenneth Polcari, senior market strategist for Slatestone Wealth LLC, wrote in a note. “Yes, the economy is slowing but inflation continues to be an issue and that is the focus now.”

 

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