US stock markets opened up on Wednesday after a surprise drop in Chinese exports and economic headwinds signaled by the OECD fueled new concerns about global growth.
The S&P 500 (^GSPC) and the Dow Jones Industrial Average (^DJI) rose above the flatline. The tech-heavy Nasdaq Composite (^IXIC) gained 0.28%.
Official trade data released on Wednesday added to concerns about the post-pandemic recovery in the world’s second-largest economy that have weighed on global markets. Chinese exports fell 7.5% in May from a year ago, while economists had expected a 0.4% drop.
“Weaker world trade is not a new story, but it is surprising how quickly China’s reopening momentum has faded, with work backlogs supporting export numbers so far, while other countries continue to see demand for their goods decline,” Craig Erlam, senior market analyst at Oanda, wrote in a note on Wednesday.
“With China’s reopening boom fading so quickly, pressure will mount on leadership to announce new stimulus measures in an effort to revive the economy,” the analyst added.
While the OECD slightly raised its 2023 global growth forecast to 2.7% in its latest economic outlook Wednesday, the group noted potential impediments to future recovery as inflation persists and rate hikes weigh on it.
Meanwhile, investors are watching closely for the S&P 500 to enter another bull market.
Treasury yields crept up after the US Treasury Department said it plans to increase the size of upcoming bill sales, putting pressure on short-term bonds. The yield on the two-year interest rate rose to 4.53%, while that on the benchmark 10-year US Treasury rose to 3.71%.
Separately, mortgage applications for home purchases nearly hit a 30-year low in May as a renewed rise in mortgage rates weakened demand, the Mortgage Bankers Association reported Wednesday.
Elsewhere, the Securities and Exchange Commission’s intensified crackdown continued to be a focus for investors after the regulator filed lawsuits against major cryptocurrency exchanges Coinbase (COIN) and Binance. The price of Bitcoin (BTC-USD) traded below $27,000 early Wednesday.
In separate stock moves, shares of Tesla, Inc. rose. (TSLA) by more than 2% following news that the Environmental Protection Agency would exclude EV manufacturers from the Renewable Fuels Standard, Reuters reported. NovoCure Limited (NVCR) emerged during a debate about its “profound” impact on lung cancer treatment.
The shares of United Natural Foods Inc. (UNFI) fell more than 26% after the grocery wholesaler posted a third-quarter profit that fell short of expectations while lowering its full-year outlook. Meanwhile, shares of Campbell Soup (CPB) fell 8% after the food company issued earnings estimates that fell below Wall Street expectations.
Shares of Netflix (NFLX) rose 4% after analysts at JPMorgan estimated the streaming giant’s password crackdown will generate nearly $6 billion in additional revenue in 2024 and 2025.
Next on the earnings list is GameStop (GME), which is expected to report earnings after markets close on Wednesday. Shares rose more than 3% in early trading.
Dani Romero is a reporter for Yahoo Finance. Follow her on Twitter @daniromerotv
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