Investing.com -- U.S. stocks are rebounding after strong data on capital goods orders overcame fears about a possible recession ahead.
The indexes resumed their rally as megacap stocks rose, though Walgreens Boots Alliance Inc (NASDAQ: WBA ) shares fell 9% after the drugstore retailer cut its fiscal year profit outlook because demand for COVID vaccines and tests is waning.
Economic data fuels optimism
Stocks stalled on Monday as fears about a recession crept higher. The Federal Reserve paused on interest rate hikes at its meeting this month but signaled another rate hike is possible, perhaps as early as July, as it continues to battle inflation .
Investors await Fed’s next move
Investors are worried that more rate hikes could eventually tip the economy into a recession, though Wall Street economists have lowered their expectations in recent weeks.
Futures traders see a greater than 75% probability that theanother quarter of a percentage point in July.
Investors will hear more from top policymakers this week when they meet in Portugal at the European Central Bank Forum, including a speech by Fed Chair Jerome Powell.
June is quickly coming to an end this week, and the second quarter with it, with the three major indexes poised to record gains for the period.
Lordstown Motors files for bankruptcy
Electric vehicle maker Lordstown Motors Corp (NASDAQ: RIDE ) shares sank 49% as it sought bankruptcy protection and put itself up for sale. It couldn’t resolve a dispute over an investment from Taiwan-based manufacturer Foxconn (TW: 2354 ).
Oil prices continue to stabilize after Russia turmoil
Add Chart to Comment
We encourage you to use comments to engage with users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind:
- Enrich the conversation
- Stay focused and on track. Only post material that’s relevant to the topic being discussed.
- Be respectful. Even negative opinions can be framed positively and diplomatically.
- Use standard writing style. Include punctuation and upper and lower cases.
- NOTE: Spam and/or promotional messages and links within a comment will be removed
- Avoid profanity, slander or personal attacks directed at an author or another user.
- Don’t Monopolize the Conversation. We appreciate passion and conviction, but we also believe strongly in giving everyone a chance to air their thoughts. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
- Only English comments will be allowed.
Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.