In a slight reprieve, U.S. stocks made gains on Thursday, with major indexes rising after a losing month. Europe’s Stoxx 600 ended a five-session losing streak, and Germany’s DAX index rose 0.7%. However, investor sentiment remains uncertain and there are concerns of a recession for the U.S. economy. At CNBC’s Delivering Alpha conference, warnings of an impending recession, a 10-year Treasury yield approaching 5%, and another rate hike by the Federal Reserve were discussed. Analysts and fund managers expressed pessimism about the future.
In other news, the European Union’s probe into subsidies given to electric vehicle makers in China does not only cover Chinese brands, such as Tesla and BMW. Brands like China’s Tesla and BMW are also being investigated. Meanwhile, Elon Musk’s SpaceX won a Pentagon contract for Starshield, a military version of the company’s Starlink satellite internet system. The contract has a maximum value of $70 million and will run for a year.
While there were some positive developments that helped boost investor sentiment, long-term prospects still look uncertain. Yields on U.S. Treasurys slightly pulled back, but the 10-year yield is still at its highest level in decades, which is concerning for traders. Oil prices also retreated, giving some relief to investors and the broader economy. However, overall bearishness among retail investors climbed to its highest level since mid-May, indicating a lack of confidence in the future.
