Stocks fell broadly in afternoon trading on Wall Street Tuesday, extending a slump for the major indexes as investors continue to worry about the state of the economy.

The S&P 500 fell 1.5% as of 12:01 p.m. Eastern. More than 85% of stocks in the benchmark index fell in the weak opening following a long weekend for the Independence Day holiday. The Dow Jones Industrial Average fell 562 points, or 1.8%, to 30,532 and the Nasdaq fell 0.3%.

Small-company stocks also fell. The Russell 2000 shed 1.2%.

Energy companies had some of the biggest losses as U.S. oil prices fell 8.1%. Exxon Mobil shed 4%.

Banks also fell significantly, along with bond yields. The yield on the 10-year Treasury, which helps set mortgage rates, fell to 2.79% from 2.90% late Friday. JPMorgan Chase fell 2.3%.

European markets were also lower.

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.

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As we enter the second half of the year, many Americans are questioning the stability of the U.S. economy amid fears we could be heading into a recession.

Later this month, the Federal Reserve Open Market Committee will meet to discuss the likeliness of more interest rate hikes to address the nation's highest inflation in more than 40 years.

Consumer prices in June saw the biggest 12-month increase since 1981.

Mary Daly is the president and CEO of the Federal Reserve Bank of San Francisco, and she suggests that the COVID-19 lockdowns and the war in Ukraine have both contributed in part to rising costs across the globe.

"We have a strong economy but inflation is too high," she said. "As an economist and policymaker, I was less startled. It [inflation] is something you can expect because we had a pandemic. We locked down the economy and then opened back up suddenly. We're ready as consumers to get back out there and buy things and do things, but supply chains are completely under siege."

Last month, the Federal Reserve attempted to tame rising costs by raising its key interest rate by 0.75% — its largest hike since 1994. It was the third rate hike from the central bank this year and more are expected.

But Daly said she isn't concerned that the Fed is overcooking things in order to tame down inflation.

"I'm not concerned because we put extraordinary emergency accommodation into the economy," she said. "We put a lot of support into the economy. When we did that, the economy was supported through the pandemic, and now we're just dialing back that support as we raise the interest rates through the end of the year. That should help bring inflation down to help get the economy back in balance."

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Consumers picked up their spending from May to June, underscoring their resilience despite painfully higher prices at the gas pump and in grocery aisles and allaying fears that the economy might be on the verge of a recession.

U.S. retail sales rose 1% in June, from a revised decline of 0.1 % in May, the Commerce Department said Friday.

The figures aren't adjusted for inflation and so largely reflect higher prices, particularly for gas. But they also show that consumers are still providing crucial support for the economy and spending on such discretionary items as furniture, restaurant meals and sporting goods.

SEE MORE: U.S. Inflation Reached 40-Year High Of 9.1% In June

At the same time, last month's spending gain is modest enough that it likely won't encourage the Federal Reserve to raise interest rates even more aggressively. Stock prices rose after the report's release.

Consumers still have significant savings, on average, bolstered by pandemic-era government relief checks and strong hiring and pay gains. JPMorgan executives said Thursday that their customers are still breaking out their credit and debit cards at a healthy pace.

The report showed consumers' ongoing appetite for nonessentials like gadgets and furniture. In fact, sales at furniture stores rose 1.4%, while consumer electronics stores rose 0.4%. Online sales showed a resurgence, posting a 2.2% increase. Business at restaurants was up 1%. But department stores took a hit, posting a 2.6% decline.

The solid figures bode well for the back-to-school shopping season, the second largest sales period behind the winter holidays. Mastercard SpendingPulse, which tracks spending across all payment forms including cash, forecasts that back-to-school spending will be up 7.5% from July 14 through Sept. 5 compared with the year-ago period when sales rose 11%.

But spending is volatile. The latest round of retail earnings reports published in May showed some slowing of spending, particularly with low-income shoppers. RH, an upscale furniture chain, cut its sales outlook for the year last month, pointing to deteriorating macro-economic conditions. It pointed to higher mortgage rates, which are slowing sales of luxury homes, indicating that even wealthy shoppers are pulling back.

Nevertheless, the overall solid spending came even as shoppers were confronted with high prices in all areas. U.S. inflation surged to a new four-decade high in June because of rising prices for gas, food and rent, squeezing household budgets and pressuring the Fed to raise rates aggressively — trends that raise the risk of a recession.

The retail sales report covers about a third of overall consumer spending and doesn't include services, such as haircuts, hotel stays and plane tickets.

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The pinch of inflation is creating a crunch for some businesses across the country and across industries. 

Businesses around the United States face a new challenge in this pandemic: raising the price of the products they sell. 

"The rent's going up, the labor's going up, the food cost is going up," said Pete Boland, the managing partner of The Galley and Mary Margaret's Olde Irish Tavern in St. Petersburg, Florida. 

Inflation, Boland said, is a real problem.

"The $3 tacos aren't $3 tacos anymore. The days of $3 beer are long gone, too," said Boland. 

In his business, he said he's looking at the price of things like to-go boxes, fry oil, chicken breasts. Like others, his operating expenses fluctuate with the market. 

"So we're trying to be creative with things like portion control, making sure we're watching people's hours and labor, making sure that if there's a way to increase price that there's a good perception of value," he said. 

They're not alone.

The PwC Pulse Survey of executive views found more than 60% of business leaders surveyed believed they'd likely have to increase the prices of goods and services this year, and more than two-thirds expected inflation to remain high this year. 

"If you think about the continued supply chain difficulties with imports still sitting in containers in major points in the country and the reality that we are living in one of the lowest inventory-to-sales ratios that we've seen probably since World War II, you realize that this inflation, while we had hoped it would be fleeting, is probably here for at least 18-24 months," said Byron Carlock, Jr., the national leader of PwC's U.S. real estate practice. 

Carlock said the adjustments upwards appear prevalent in most industries. 

"I think the fed is going to continue to show us their strength in moderating inflation," he said.

"I think all efforts will be to contain the inflation and hope that once the supply chain levels out again we will see prices begin to stabilize."

Experts say for many managers, it's the first time they've experienced inflation like this. 

"This is the first rodeo of severe price inflation for many businesses and for many managers," said John Quelch, dean of the Miami Herbert Business School.

"It's important they adjust their prices in sync with the cost input adjustments they're having to bear on raw materials, on wages, so forth."

Quelch's advice is to buy early and buy often.

"Even though the supply chain problems were and are still part of the inflation equation, they are not such a large part of it that once they're fixed inflation is going to go away," he said. 

At The Galley, Boland said the digital menu makes it easier for them to adjust their prices.

Right now, customers will find a $4 increase in the wings since September. But Boland explained they have a loyal following. 

"You know the economy's raging here so people are a lot less price-conscious than they used to be, and they are understanding that the world has changed," he said.

This story was first reported by Haley Bull and Lindsay Tuchman at Newsy.

We're entering year three of a scorching hot housing market, but even if the economy recovers as expected, that won't immediately solve the housing supply shortage across the U.S. The shortage existed before 2020, but the pandemic made things even worse.

There's a lack of materials due to supply chain bottlenecks, and building companies have struggled to fill jobs amid the great resignation. Low supply matched with high demand has sent prices soaring.

"Homes that were $380,000 are now $520,000," developer Ed Pavicic said.

The average household income in United States is just over $67,000, and if you follow the advice of conventional financial planners, you shouldn't buy a home worth more than three times your salary.

That means the average household should shoot for a home around $200,000. However, that's half of what they're going for these days, on average.

The good news is some experts say a turnaround is coming as the U.S. Federal Reserve prepares to raise interest rates.

Chairman Jerome Powell said earlier this month that interest rates could rise at least three times or more this year if inflation doesn't fall. But it's still unclear how quickly that will happen, or just how much it might bring prices down.

This story was originally reported by Bianca Facchinei on Newsy.com

Netflix is raising prices for its video streaming customers in the U.S. and Canada, less than a year and a half after its last price increase.

The move comes as competition from other streaming services ramps up.

The company said Friday that prices are going up depending on the plan. The "standard" plan that most people subscribe to is increasing by $1.50, to $15.50. The Canadian version is going up by the same amount in their local currency, to $16.50 Canadian dollars.

Price increases are becoming more of a regular feature at Netflix, which is facing saturation in the U.S. market. Of Netflix's 213.5 million subscribers, some 74 million are in the U.S. and Canada.

Netflix received an influx of global subscribers early in the pandemic, but is investing in video games as it looks beyond movies and TV for growth.

In the U.S., Netflix's most expensive plan is increasing and the platform's basic plan is up too. The plans vary based on options like the number of screens users can watch Netflix on at the same time and the number of phones or tablets that can download content.

The company still mails out DVDs in a service that requires a separate plan.

Netflix will tell customers by email and inside the Netflix app before the new price is applied to them. Customers in New York, Alabama and Louisiana also got hit with a new local sales tax bill, which Netflix says was because of the addition of video games to the service.

Raising prices carries the risk that people will cancel. Netflix remains the dominant U.S. streaming service, but others, such as HBO Max and Disney+, have increased in popularity.

This story was originally published by Dave Briggs of Newsy, and the Associated Press contributed to this report.

HIGHGATE, Vt. — For Jason Gagne, maple syrup is more than a topping. It's a lifestyle.

"It's not just for pancakes anymore," he said.

Gange runs his family farm, Gange Maple, and he's right. The use of maple has expanded.

"People use it in baking, cooking, they love it in their drinks at night," he said. "You can put it anywhere."

For Gagne and thousands of other maple producers in the Northeast, that expansion happened rapidly during the pandemic.

"COVID found that more people were eating maple syrup at home," Gagne said. "When the restaurants all closed, the consumption of maple syrup went up."

Gagne says demand went up about 25% — and it's up everywhere.

The Québec Maple Syrup Producers (QMSP) recently released around 50 million pounds of maple syrup from its strategic reserve in November to try and keep up with demand.

"Demand for maple syrup has been booming in 2020 and 2021," the QMSP said in a statement. "Businesses, noting the average-only harvest in Canada and the United States, responded by increasing their orders, necessitating QMSP's withdrawals from the Reserve."

Experts in the American maple industry say the country won't run out of syrup any time soon.

"There's still plenty of maple syrup to go around, there's not really a shortage of maple syrup," Gagne said.

Experts say tapping into a strategic reserve is pretty normal for agriculture economies.

"Typically, these reserves are in place in order to balance supply and demand and pricing," said Jack Buffington, who runs the supply chain program at the University of Denver. "A lot of times in agriculture and farming, it relates to pricing,"

Buffington says specific food shortages likely aren't as serious as they may seem, unlike the shortages affecting some other commodities.

"There's some commodities where this really matters: Oil semiconductors, aluminum, copper. Commodities that are critical," Buffington said. "This is really the lifeblood of how our supplies chains work."

Maple may not move the needle on a national level, but it's the heartbeat of the economy for thousands of producers in the Northeast and their families.

"The family's been making maple syrup pretty much as long as anybody can remember, from my grandfather and going back to his parents," Gange said. "We've grown from when we started here from maybe 1,500 trees that we tap, and now we have over 22,000 here."

Gange knows farmers don't farm for the money. They do it because they love what they do.

Bitcoin rallied to a record Wednesday, topping $66,000 for the first time, amid a wave of excitement about how the financial establishment increasingly accepts the digital currency's rise.

Bitcoin was trading at $66,439, up 5.9%, as of 12:40 p.m. ET, after earlier climbing as high as $66,974.77.

It has roared back after sinking below $30,000 during the summer to top its prior record set in April. That previous all-time high was nearly $64,889, according to CoinDesk.

The surge has come as more businesses, professional investors, and even the government of El Salvador buy into Bitcoin, further broadening its base beyond its initial core of fanatics.

 

The latest converts came into the world of crypto on Tuesday, when the first exchange-traded fund linked to Bitcoin found massive interest from investors.

Shares of the ProShares Bitcoin Strategy ETF changed hands 24.1 million times in a resounding debut.

ProShares, an exchange trading company, listed an ETF that tracks Bitcoin futures on the New York Stock Exchange, the New York Times reported.

“2021 will be remembered for this milestone,” said Michael Sapir, the C.E.O. of ProShares, in an interview with the news outlet.

It was off to another strong start Wednesday, with volume topping 19.6 million within the first three hours of trading.

The ETF doesn’t invest directly in Bitcoin. It instead invests in the futures market tied to Bitcoin, but the industry sees the ETF bringing in a new class of investors.

Someone with an old-school brokerage account can buy the ETF, for example, without opening a trading account for crypto.

Investors are getting more interested in Bitcoin because they always look for assets whose prices move independently of everything else in their portfolios.

One school of thought says Bitcoin can offer investors protection from high inflation, and some fans see it as akin to “digital gold,” though it doesn't have a long track record to back that up.

More high-minded fans say digital assets are simply the future of finance, allowing transactions to sidestep intermediaries and fees with a currency that’s not beholden to any government.

Cryptocurrencies are still very far from winning over everyone, though. Critics point to how they're still not widely used as forms of payment. They also criticize how much energy is used by the cryptosystem, which adds to climate-changing emissions.

The biggest threat, meanwhile, is all the regulatory scrutiny shining on it.

Veronica De La Cruz at Newsy first reported this story.

You may not pay attention to where your burgers come from, but forthre meat processing industry, COVID-19 has shed light on some of the issues the supply chain faces for both big and small companies.

“I founded the company in 1990,” Geoff Latham, president and CEO of Nicky USA, said.

Nicky USA is a small meat processor and distributor in Oregon. When we visited, the building was busy cutting, packing, and sending off meats. The demand for processing hasn’t gone away since the start of the pandemic; it’s actually increased.

“Our processing plant has been the heart and soul of me and my company and really excelled at that time. Our distribution was suffering but our processing plant, the demand skyrocketed for the plant,” Latham said.

Last year, the pandemic shook America’s food supply chain as restaurants closed and groceries saw a spike in demand. Meat processors were included.

“We had to turn away a lot of business in the processing side just because we only had so many hours per day we could get done,” Latham said.

Where those meats ended up changed.

“When COVID-19 hit, we were 85 percent restaurants, zero direct to consumer, and about 15 percent was...butcher shops and retailers,” he explained.

Now, Latham said restaurants are only 45 percent of his businesses, and 10 percent comes from a new direct-to-consumer model.

“It doesn’t seem like much, but it’s a very important 10 percent of what we do,” he explained. ”A really big part of our survival has been the support of direct to consumer.”

COVID-19 shook up a lot of industries, and small processing facilities happened to benefit in some ways.

“Over the last year, there’s really been a surge of demand for those,” David Anderson, livestock economist and professor at Texas A&M University, said.

Anderson is referring to these smaller plants.

“They may not have an open date until next year, 2022, so there has been a surge in demand for those services and those are very small plants,” he said.

Meanwhile, large plants were dealing with their own problems, including COVID-19 outbreaks that received attention from the federal government and national news.

“When COVID hit and the big packing plants were getting written up in the paper, hundreds and hundreds of people getting sick. It really temporarily stopped the supply chain, which most people don't realize is just so massive,” Latham said.

The CDC reported almost 5,000 people tested positive for COVID-19 in 225 facilities across the U.S. Outbreaks at larger plants caused a ripple effect.

“Just as an example, we saw prices skyrocket when we had a COVID outbreak in the Midwest, and all of a sudden, beef is $3 to $4 more expensive here in Oregon,” Latham said. “It really emphasized how important it is to maybe decentralize some of our production in this country.”

Latham said more local production is the solution.

“The more you can buy regionally, the better it mitigates prices going up and down that dramatically,” he said.

However, Anderson said, while he’s seeing more of these small facilities doing well, the larger plants still have a purpose.

“The reason food is so cheap is because those places are so big,” he said. “Big plants have much lower costs than little plants, so if we took that a step further and went to a system with a lot of little plants, our food is going to cost a lot more.”

“I just believe that COVID made people realize how important it is to support your local people,” Latham said.