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Beaten-down US stocks open higher
People walk along a Wall Street sign in New York on June 16, 2022. — AFP pic

NEW YORK, June 23 — Wall Street stocks opened higher today as investors weighed recession worries against its bargain-hunting inclinations as markets hope for a rebound from recent losses.

Stocks rallied Tuesday and held most of those gains yesterday in a choppy session that ended modestly lower. Major indices have fallen throughout 2022 as the Federal Reserve hikes interest rates aggressively in its battle to quell surging inflation.

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Fed Chair Jerome Powell told a Senate panel yesterday that the US economy remains on solid ground, but acknowledged there is a risk of recession amid higher interest rates.

"Powell was very candid. He basically said we are going to do everything to fight inflation and he said the consequence is maybe a recession,” said Peter Cardillo of Spartan Capital.

"But the market was taking that pretty much in a stride because a lot of that is already discounted in the market.” About 20 minutes into trading, the Dow Jones Industrial Average was up 0.5 per cent at 30,636.40.

The broad-based S&P 500 gained 0.4 per cent to 3,774.64, while the tech-rich Nasdaq Composite Index advanced 0.3 per cent to 11,085.21.

Powell was due for a second round of testimony later Thursday on Capitol Hill, speaking to a House Committee in his semi-annual appearance. — AFP

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