U.S. indexes shake off an early slump and eke out gains

Major stock indexes shook off an early slump and ended with meager gains on Wall Street Tuesday as worries about the economy continue to weigh on markets.

Oil prices slumped, bringing the price of U.S. crude back below $100 a barrel for the first time since early May. Tech stocks staged a turnaround and ended higher. The S&P 500 eked out a gain of 0.2% and the tech-heavy Nasdaq rose 1.7%.

The Dow Jones Industrial Average remained in the red, losing 0.4%. The yield on the 10-year Treasury note, which helps set mortgage rates, fell to 2.82%.

Energy companies had some of the biggest losses as the price of U.S. crude oil slumped 9.1%. Exxon Mobil fell 4.5% and Hess dropped 8.2%.

Health care stocks also weighed on the market. Unitedhealth fell 3.9%.

European markets fell broadly. Stocks remain in a slump that pulled the S&P 500 into a bear market last month, meaning an extended decline of 20% or more from a recent peak. The market’s performance in the first half of 2022 was the worst since the first six months of 1970.

Inflation has been squeezing businesses and consumers throughout the year, but tightened its grip after Russia invaded Ukraine in February.

The invasion sent oil prices higher globally and sent gasoline prices in the U.S. to record highs. That prompted a pullback in spending from consumers struggling with higher prices on everything from food to clothing.

Lockdowns in China from rising COVID-19 cases have also made supply chain problems worse.

Central banks have been raising interest rates in an attempt to temper inflation. The Federal Reserve has been aggressive in its shift from historically low interest rates at the height of the pandemic to unusually big rate increases. But that has raised concerns that the central bank could go too far in raising rates and hitting the brakes too hard on economic growth, which could bring on a recession.

Wall Street has been closely watching the latest economic updates for more clues on how inflation is impacting the economy and whether that could shift the Fed’s position on rate hikes. Wall Street will get a closer look at the employment market on Friday when the government releases employment data for June.

Investors are also looking ahead to the next round of corporate earnings for a clearer picture of inflation’s impact.

Several big companies recently warned that their financial results are being squeezed by inflation, including spice and seasonings maker Mccormick.

SPENCER PLATT/GETTY IMAGES/TNS Traders at the New York Stock Exchange and elsewhere are continuing to deal with overall economic worries, much of it triggered by inflation and oil prices. Now the Federal Reserve and other central banks are raising interest rates, which is leading to other concerns.