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U.S. Stocks on Track for a Down Month on Inflation Fears

Published 05/31/2022, 09:55 AM
Updated 05/31/2022, 10:08 AM
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By Liz Moyer

Investing.com -- U.S. stocks fell on Tuesday amid persistent inflation fears.

At 10:36 AM ET, the Dow Jones Industrial Average was down 246 points, or 0.7%, while the S&P 500 was down 0.7% and the NASDAQ Composite was down 0.7%.

Stocks were on track to end the month lower despite last week's rally. The Dow and the S&P were down about 1% on the last day of trading for the month, while the Nasdaq was down about 2%.

Federal Reserve Chairman Jerome Powell was set to meet with President Joe Biden later Tuesday as the central bank continues to try and tame inflation. Biden's approval ratings are lower than his predecessor and previous presidents at this point in their terms, polling data showed. The price of gasoline over the holiday weekend in the U.S. was above $4.60 a gallon nationally, and above $6 a gallon in some places like California, pinching already strained household budgets as summer travel season kicked off.

Consumer confidence measured by the Conference Board was 106.4, higher than the 103.9 expected.

Shares of Unilever PLC ADR (NYSE:UL) jumped more than 8% after billionaire activist investor Nelson Peltz was named non-executive chairman. His Trian Fund Management has a 1.5% stake in the consumer product company.

Zoom Video Communications Inc (NASDAQ:ZM) stock fell 2% despite a double upgrade by Daiwa Securities to outperform from underperform, citing the recent tech pullback.

Oil prices surged. Crude Oil WTI Futures rose 1.1%, to $118 a barrel, while Brent Oil Futures rose 1.4%, above $119 a barrel. Gold fell 0.5% to $1,848 an ounce.

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