NEW YORK — Stocks edged higher in morning trading on Wall Street today following the market’s worst day in two years on fears about higher interest rates and the recession they could create.
The S&P 500 rose 0.4% as of 9:13 a.m. Central. The benchmark index is coming off its biggest drop since June 2020, which ended a four-day winning streak.
The Dow Jones Industrial Average rose 68 points, or 0.2%, to 31,169 and the Nasdaq rose 0.5%.
Energy stocks had some of the biggest gains as U.S. crude oil prices rose 2.2%. Exxon Mobil rose 2.6%.
Bond yields remained relatively stable after leaping on on Tuesday. The yield on the two-year Treasury rose to 3.79% from 3.75% late Tuesday, when it soared on expectations for more aggressive interest rate hikes by the Federal Reserve.
The yield on the 10-year Treasury, which helps dictate where mortgages and rates for other loans are heading, rose to 3.43% from 3.41%.
A report on inflation at the wholesale level showed prices are still rising rapidly, with pressures building underneath the surface, even if overall inflation slowed. It echoed a report on inflation at the consumer level Tuesday, which raised expectations for interest-rate hikes and triggered a rout for markets.
Traders now see a one-in-three chance the Fed may hike its benchmark rate by a full percentage point next week, quadruple the usual move. The central bank has already raised its benchmark interest rate four times this year, with the last two increases by three-quarters of a percentage point.