Stocks open higher, clawing back a piece of last week’s drop

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New York – Stocks are opening broadly higher on Wall Street Tuesday, clawing back some of the ground they lost in their worst weekly drop since the beginning of the pandemic.

The S&P 500 was up 2%. The benchmark index is still down 22% from the record high it set in January. The tech-heavy Nasdaq was up 2.3% and the Dow Jones Industrial Average was up 1.5%.

Kellogg rose 4.3% after the maker of Frosted Flakes and Rice Krispies said it would split into three companies.

The yield on the 10-year Treasury rose to 3.30%.

European markets were also higher and Asian markets closed mixed overnight.

London and Frankfurt opened higher. Tokyo, Hong Kong and Sydney gained while Shanghai declined. Oil prices climbed above $110 per barrel.

“The modest equity market recovery continues in Asia, thanks to U.S. index futures grinding higher,” Jeffrey Halley of Oanda said in a report.

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In midday trading, the FTSE 100 in London advanced 0.6%, as did the DAX in Frankfurt. The CAC 40 in Paris was 1.2% higher.

In Asia, the Nikkei 225 in Tokyo added 1.8% to 26,246.31 while the Shanghai Composite Index lost 0.3% to 3,306.72. Hong Kong’s Hang Seng advanced 1.9% to 21,559.59.

The Kospi in Seoul was 0.7% higher at 2,408.93 and Sydney’s S&P-ASX 200 rose 1.4% to 6,523.80.

India’s Sensex opened up 1.9% at 52,569.30. New Zealand and Southeast Asian markets gained.

Investors worry efforts by U.S. and European central banks to cool inflation that is running at a four-decade high might derail global economic growth.

Japan and China, two of the three biggest economies, have avoided joining in rate hikes. On Monday, China’s central bank left its benchmark rates unchanged. The Bank of Japan stuck to its policy of near-zero interest rates last week despite concern that is weakening the yen’s exchange rate.

On Friday, the S&P rose 0.2% but ended the week down 5.8% for its tenth drop in 11 weeks. That was its biggest weekly decline since March 2020 at the start of the global pandemic.

The Dow dipped 0.1% while the Nasdaq composite gained 1.4%.

The S&P 500 has fallen by more than 20% from its Jan. 3 peak, putting it in what traders call a bear market.

Investors are looking for clues of Fed plans for possible additional rate hikes when Chair Jerome Powell speaks before congressional committees this week.

In energy markets, benchmark U.S. crude jumped $1.88 to $111.44 per barrel in electronic trading on the New York Mercantile Exchange. Brent crude, the price standard for international oil trading, gained $1.54 to $115.67 per barrel in London.

The dollar rose to 136.30 yen from Monday’s 135 yen. The euro gained to $1.0554 from $1.0491.