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U.S. stock futures rose Thursday after an attempt at a rebound fizzled the day before, with the Dow Jones Industrial Average, the S&P 500 and the Nasdaq all edging lower at the close. For all of last week, the S&P 500 saw its worst weekly performance since March 2020, the month the Covid pandemic was declared. Growing concern on Wall Street about a recession as a result of the Federal Reserve’s stepped-up fight against inflation has been gutting stocks, with the S&P 500 confirming earlier this month that a bear market began in early January.
Federal Reserve Chair Jerome Powell reacts as he testifies before a Senate Banking, Housing, and Urban Affairs Committee hearing on the “Semiannual Monetary Policy Report to the Congress”, on Capitol Hill in Washington, D.C., U.S., June 22, 2022.
Elizabeth Frantz | Reuters
Fed Chairman Jerome Powell goes back to Capitol Hill on Thursday for Day Two of his semiannual testimony on monetary policy. He appears before the House Financial Services Committee, one day after telling the Senate Banking Committee on Wednesday that the central bank has the “resolve” to tame inflation that’s surged to 40-year highs. Powell also told senators Wednesday that he believes the economy is strong now but acknowledged a recession could happen.
- Money fleeing stocks due to recession fears has been piling into bonds recently, pushing prices up and yields down. The 10-year Treasury yield dropped Thursday to just over 3.1%, its lowest level in nearly two weeks. The benchmark yield topped 2011 highs near 3.5% last week after the Fed’s biggest interest rate hike since 1994 and an initial pop in stocks.
A United Airlines passenger airplane is landing on Newark Liberty International Airport in Newark, New Jersey, on January 19, 2022.
Tayfun Coskun | Anadolu Agency | Getty Images
United Airlines will announce Thursday a temporarily reduction of about 50 daily domestic departures from its Newark, New Jersey, airport hub, starting July 1, to address congestion and as concerns mount over cancellations. The summer cuts represent 12% of United’s 425 daily flights at Newark, one of the three major airports near New York City. The airline told Reuters the changes won’t result in the carrier exiting any markets. Meanwhile, American Airlines plans to drop service to four U.S. cities in September, including Dubuque, Iowa, which will lose scheduled commercial air service altogether.
US President Joe Biden delivers remarks on efforts to lower high gas prices in the South Court Auditorium at Eisenhower Executive Office Building June 22, 2022 in Washington, DC.
Jim Watson | AFP | Getty Images
Major U.S. oil refiners will meet with U.S. Energy Secretary Jennifer Granholm and other Biden administration officials Thursday about how to lower record-high gas prices squeezing American consumers. The emergency meeting comes one day after President Joe Biden called for a federal gas tax holiday that seemed dead on arrival on Capitol Hill. The gathering also follows weeks of Biden bashing Big Oil for reaping huge profits from a fuel supply crunch exacerbated by Russia’s invasion of Ukraine.
A Russian ruble coin is pictured in front of St. Basil’s cathedral in central Moscow, on April 28, 2022.
Alexander Nemenov | AFP | Getty Images
Russia’s ruble rose to its strongest levels since May 2015, with 53.4 rubles buying $1 on Thursday, an increase of roughly 2% from the previous session. That’s a world away from the Russian currency’s plunge to 139 to the dollar in early March, when the U.S. and European Union started rolling out unprecedented sanctions on Moscow in response to its invasion of Ukraine. The Kremlin pointed to the ruble’s stunning surge recently as “proof” that Western sanctions aren’t working.