US stocks opened higher on Wednesday after a surprise fall in Chinese exports and economic headwinds reported by the OECD fueled fresh concerns about global growth.
The S&P 500 (^GSPC) and Dow Jones Industrial Average (^DJI) rose above the zero line. The tech-heavy Nasdaq Composite (^IXIC) gained 0.28%.
Official trade data released on Wednesday added to concerns about the world's second largest economy's post-pandemic recovery that have weighed on global markets. China's exports fell 7.5% yoy in May, while economists had expected a 0.4% decline.
“Weaker global trade isn't new history, but it's surprising how quickly China's reopening momentum has faded, with backlogs of work supporting export figures so far while other countries continue to slacken demand for their goods,” said senior market analyst Craig Erlam at Oanda, wrote in a note on Wednesday.
“As China's reopening boom wanes so quickly, pressure will mount on leaders to announce new stimulus measures to restart the economy,” the analyst added.
While the OECD slightly raised its global growth forecast for 2023 to 2.7% in its latest economic outlook on Wednesday, the group identified potential drags on the future recovery as inflation persists and interest rate hikes weigh.
Meanwhile, investors are watching closely to see if the S&P 500 will enter a new bull market.
Treasury yields jumped after the US Treasury announced it would increase the volume of its forthcoming bill sales, putting pressure on short-dated bonds. The yield on the two-year yield rose to 4.53%, while the yield on the benchmark 10-year US Treasury bond rose to 3.71%.
Separately, in the real estate sector, home mortgage applications in May nearly hit a 30-year low as a renewed rise in mortgage rates weakened demand, the Mortgage Bankers Association reported on Wednesday.
Elsewhere, the Securities and Exchange Commission's tightened crackdown remained a focus for investors after the regulator filed lawsuits against leading cryptocurrency exchanges Coinbase (COIN) and Binance. Bitcoin price (BTC-USD) traded below $27,000 early Wednesday.
On isolated stock moves, shares of Tesla, Inc. (TSLA) rose more than 2% after it was announced that the Environmental Protection Agency would ban electric vehicle makers from the renewable fuel standard, Reuters reported. NovoCure Limited (NVCR) saw a rebound amid debate over its “profound” impact on lung cancer treatment.
United Natural Foods Inc. (UNFI) shares fell more than 26% after the food wholesaler posted third-quarter earnings that fell short of expectations while lowering its full-year outlook. Meanwhile, shares of Campbell Soup (CPB) fell 8% after the food giant issued an earnings forecast that fell short of Wall Street expectations.
Netflix (NFLX) shares surged 4% after analysts at JPMorgan estimated the streaming giant's crackdown on passwords will generate nearly $6 billion in additional revenue in 2024 and 2025.
Next on the earnings list is GameStop (GME), which is set to announce earnings after the market close on Wednesday. Shares are up more than 3% in early trade.
Dani Romero is a reporter for Yahoo Finance. Follow her on Twitter @daniromerotv
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