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S&P 500 in a volatile Nasdaq climb session

Shares rose Thursday as three major U.S. indices remained in the green after shaking up previous losses.

The S&P 500 gained 0.7% in morning trading. Technology-based Nasdaq Composite added 1.4%. The Dow Jones Industrial Average was up 0.3%. Major stock indexes fell in a volatile trading session to start the month on Wednesday.

Shares of Microsoft fell 1.6% after the software company cut its sales and earnings guidance for the current quarter, citing the impact of exchange rates as the stronger U.S. dollar takes more damage. Investors say this is the latest example of companies facing marginal pressure this year.

Investors have struggled in recent months to assess how much and how quickly the Federal Reserve will raise interest rates in order to ease inflation. Some moneylenders are concerned that tightening policies could slow economic growth or lead the U.S. into a recession.

The disruptions in the supply chain that have exacerbated the pandemic have further affected the wars in Ukraine and China’s zero-covid strategy. This has increased the cost of energy, food and other products this year.

Russia-led OPEC and non-OPEC oil producers agreed to higher oil prices after agreeing to a higher-than-expected increase in crude oil prices.

Brent crude oil futures, the global benchmark for oil, rose about 0.4% recently to $ 116.80. The market was expected to rise in supply at a meeting between 13 members of the Organization of Petroleum Exporters and 10 non-OPEC producers on Thursday. The United States and Europe have pushed for a so-called OPEC + group to pump more crude as Russia’s invasion of Ukraine raises oil prices by more than $ 100 a barrel.

“Fear is that demand is still outstripping supply and increasing supply does not make up for the difference,” said Peter E. Klingelhofer, chief investment officer at Hamilton Capital, Ohio, an investment firm in Hamilton Capital. His company is overweight in energy stocks.

Some OPEC members were considering suspending Russia’s involvement in a production deal as Western sanctions and a partial European ban begin to reduce Moscow’s ability to pump more, The Wall Street Journal reported on Wednesday.

US stocks fell on Wednesday, the first trading day in June, after a volatile month limit.


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Michael Nagle / Bloomberg News

In bond markets, the benchmark 10-year Treasury bill yield traded at 2.911% on Thursday, up 2.930% from Wednesday. Yields and prices are reversed.

Efforts to send grain damaged by the war between Russia and Ukraine showed progress on Wednesday. UN Secretary-General António Guterres has led talks on how to transport stranded grains and sunflower oil that are blocked in Ukrainian ports in the Black Sea and to transport Russian grains and fertilizers to world markets.

“It’s a very difficult environment. There are so many factors at stake here, and the dynamics are so difficult to interpret, ”said Peter Garnry, head of Saxo Bank’s capital strategy. “We believe that the Fed will have to be very aggressive to keep inflation under control.”

Federal Reserve Vice President Lael Brainard said on Thursday that a mid-percentage point interest rate hike would be appropriate for the next two Fed meetings, but did not take specific steps for the next meetings.

Investors are monitoring data on the labor market. Faith President Jerome Powell has expressed concern that the labor market has been overheating in recent months. Tight labor markets can add to inflation as workers ’competition increases their bargaining power.

The ADP employment report showed that the private sector added 128,000 jobs in May, less than the 299,000 expected by economists surveyed by The Wall Street Journal. Initial unemployment claims fell to 200,000 last week from a review of the previous week’s 211,000 levels, the Labor Department said on Thursday. The number is seen as a proxy for releases.

In individual stocks, Chewy’s shares rose 19% after online pet product retailers made a surprise profit and forecast a revenue gap above Wall Street estimates. Shares of MongoDB were up 18% from the results of the database company’s Wall Street estimates.

Abroad, the Stoxx Europe 600 pan-continental gained 0.5%. Markets in the UK were closed for the holidays.

Major Asian indices closed lower, with South Korea’s Kospi and Hong Kong’s Hang Seng falling 1% each. Japan’s Nikkei 225 was down 0.2%, while China’s Shanghai Composites was down, up 0.4%.

Write to Caitlin Ostroff at caitlin.ostroff@wsj.com and to Hardika Singh at hardika.singh@wsj.com

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S&P 500 in a volatile Nasdaq climb session

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