22June:US stocks opened low before Mr Powell testified to the Senate on inflation

US stocks opened lower on continued recession fears as Federal Reserve Chairman Jerome Powell prepared to answer lawmakers' questions about the economy.




At 9:50 am ET, the Dow Jones was down 239 points or 0.8%, while the S&P 500 was down 0.7% and the NASDAQ Composite was down 0.5%.



Mr. Powell will appear soon this morning on the Senate Banking Committee for a semi-annual update on the situation of the economy. His prepared remarks echoed his promise that the central bank was strongly committed to curbing inflation and that it would be appropriate to continue to raise interest rates.



Today's early sell-off comes after stocks soared on Tuesday as investors tried to push back a week of heavy losses.



Banks are raising expectations for a recession. Yesterday, Goldman placed the odds at 30% next year, while Citigroup now says there is a 50% chance of a global recession when consumers pull back on spending.



President Joe Biden is trying to do his part to reduce inflation. Later today, he is expected to call on Congress to suspend federal taxes on gasoline and diesel fuel for three months.






Energy stocks are being crushed by falling oil prices. WTI crude oil futures fell more than 5% to $ 103 / barrel and Brent crude for futures fell 5.4% to $ 108.25. Gold futures were up 0.4% to $ 1,845.


Shares of ConocoPhillips (NYSE: COP) fell more than 6%, while shares of Marathon Oil Corporation (NYSE: MRO) fell more than 7%. Occidental Petroleum Group (NYSE: OXY) fell 5%.




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