The Dow retained its afternoon gains on Wednesday, adding 82 points, though Wall Street is still heading for the worst first half of the year since 1970. The S&P 500 and Nasdaq both settled slightly below breakeven after Federal Reserve Bank of Cleveland President Loretta Mester reignited recession fears when she noted she may support a 75 basis point interest rate hike in July. In other news, revised gross domestic product (GDP) data showed the U.S economy contracted in the first quarter.
The Dow Jones Average (DJI -31,029.31) added 82.3 points or 0.3% for the day. McDonald's (MCD) led the gainers, adding 2%. Caterpillar (CAT) paced the laggards with a 2.1% drop.
The S&P 500 Index (SPX - 3,818.83) shed 2.7 points, or 0.07% for the day. Meanwhile, the Nasdaq Composite (IXIC - 11,177.89) lost 3.7 points, or 0.03% for the session.
Lastly, the Cboe Market Volatility Index (VIX - 28.16) fell 0.2 points or 0.7% for the day.
OIL PRICES SNAP WIN STREAK ON PRODUCTION BOOST TALKS
Oil prices settled lower on Wednesday, snapping a three-day win streak. Black gold brushed off Energy Information Administration (EIA) data that showed a decline in U.S. crude inventories in the last two weeks, with investors expecting the Organization of the Petroleum Exporting Countries and their allies (OPEC+) to confirm a production boost for August. August-dated crude lost $1.98, or 1.8%, to settle at $109.78 per barrel.
Gold prices were also lower for a third consecutive day. The yellow metal suffered as the U.S. dollar regained strength after the central bank reinforced its hawkish policy. August-dated gold shed $3.70, or 0.2%, to close at $1,817.50 an ounce.
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