U.S. Stocks Open Lower as ECB Outlook Pushes Bond Yields Higher
2022.06.09 17:20
By Liz Moyer
Investing.com — U.S. stocks opened mostly lower after the European Central Bank signaled it’s plan to raise rates in July sent bond yields higher.
At 9:55 AM ET, the Dow Jones Industrial Average was up 14 points, or 0.04% while the S&P 500 was down 0.06% and the NASDAQ Composite was down 0.1%.
The ECB said it would raise its rate by a quarter of a percentage point in July and would again raise it in September as it joins other central banks in trying to tackle inflation by raising borrowing costs. The U.S. 10-year Treasury yield rose above 3%. The ECB’s move comes a couple of days before the latest reading on U.S. inflation in the form of the consumer price index for May. Analysts expect the annual increase to be 8.3%, about the same as the rate in April.
Then, of course, the Federal Reserve meets next week to make the next step in its rate-increasing plan.
Shares ofZendesk Inc (NYSE:ZEN) fell 11% on Thursday after the customer service software maker said it concluded a strategic review without finding any “actionable” potential buyout offers and would remain independent.
Tesla Inc (NASDAQ:TSLA) shares rose nearly 3% after UBS called it a buy, upgrading it from neutral.
Five Below Inc (NASDAQ:FIVE) shares fell 4% after the discount retailer said first quarter profit fell because of rising costs.
Oil dipped lower. Crude Oil WTI Futures fell 0.3%, to $121.70 a barrel, while Brent Oil Futures was flat at just above $123 a barrel. Gold Futures fell 0.3% to $1,850 an ounce.
