U.S. Stocks Trim June Losses as S&P 500 Rises 0.8 Percent

Investors want to see strong growth in profits to justify the big gains stocks made early in the quarter. Despite June’s drop, the S&P 500 is still on track for its best quarter since six years ago, when stocks rocketed out of the crash caused by the COVID pandemic.

Concentrix tumbled 13.1 percent after the technology company reported profit and revenue for the latest quarter that were just shy of analysts’ expectations.

In the oil market, prices drifted as two US envoys arrived in Qatar for talks with mediators about the implementation of an initial deal to end the war in Iran. The Americans will not be having direct negotiations with Iranian diplomats while in Doha.

The price for a barrel of Brent crude oil, the international standard, erased an early, modest rise and fell 1.1 percent to $US73.12. The hope is that an end to the war will restore full access to the Strait of Hormuz, allowing oil tankers to move more crude and lower its price.

Expensive oil has already sent inflation jumping around the world, which in turn has raised worries that the Federal Reserve and other central banks may have to raise interest rates. Higher rates would keep a lid on inflation, but they would also slow economic growth and hurt prices for investments.

The yield on the 10-year Treasury rose to 4.41 percent from 4.38 percent late Monday. In stock markets abroad, indexes rose across much of Europe and Asia. Germany’s DAX returned 1.5 percent, and South Korea’s Kospi climbed 1 percent for two of the world’s bigger gains.

Japan’s Nikkei 225 rose 0.9 percent as the value of the Japanese yen dropped near its lowest level against the US dollar in 40 years. US government bonds are paying much higher yields than their Japanese counterparts, and the possibility of rate hikes by the Fed is putting more pressure on the yen.