U.S. Stocks Open Higher as Investors Try to Shake Off Last Week’s Losses
2022.05.23 17:07
By Liz Moyer
Investing.com — U.S. stocks opened higher on Monday, trying to recover from last week’s losses as global business and political leaders meet in Davos, Switzerland, for the annual World Economic Forum meeting, which is being held in person for the first time since the pandemic started.
At 9:42 AM ET, the Dow Jones Industrial Average was up 293 points, or 0.9%, while the S&P 500 was up 0.8% and the NASDAQ Composite was up 0.6%.
Helping the sentiment were comments from President Joe Biden that the U.S. was examining tariffs on China and could be reduced or eliminated. Biden wasn’t at Davos, but he was traveling in Asia.
In a CNBC appearance at Davos, Bank of America CEO Brian Moynihan said “There’s a lot of fear and worry about the Fed tightening,” in reference to rising interest rates. “The fear is going up. But the reality is, no one’s really saying there’ll be a recession in 2022 or 2023 yet. We’ll see what happens there.”
The S&P 500 dipped briefly into bear market territory on Friday as part of a prolonged selloff in stocks that began earlier this year while investors braced for the effects of rising rates and the erosion of inflation on their spending power.
Shares of cloud computing company VMware Inc (NYSE:VMW) jumped 18% on a report it was in advanced talks with Broadcom Inc (NASDAQ:AVGO) about a takeover, The Wall Street Journal reported. And Starbucks Corporation (NASDAQ:SBUX) shares inched up 0.1% after it said it was exiting Russia after 15 years.
Banks were also in the headlines. Bank of America Corp (NYSE:BAC) shares rose 3%. It is raising its minimum hourly pay in the U.S. to $22. JPMorgan Chase & Co (NYSE:JPM) shares rose 3% after it raised its outlook for net interest income.
Oil ticked higher.Crude Oil WTI Futures was up 0.3% to $110.55 a barrel, while Brent Oil Futures crude rose 0.3% to $110.32 a barrel. Gold Futures rose 0.7% to $1,854 an ounce.
