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Stock market news live updates: January 20, 2022

U.S. stocks bounced back Thursday from a turbulent previous session as investors weighed a series of upbeat earnings and a fresh read on weekly jobless claims out of Washington.

The Nasdaq gained 1.74{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996}, recouping some losses from a volatile session on Wednesday that saw the benchmark close in correction territory — or at least 10{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996} down from its peak — as rising bond yields and concerns around tighter monetary policy continued to plague investors. The Dow Jones Industrial Average and S&P 500 also advanced after earlier losses, each up more than 1{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996} in intraday trading.

On the economic front, first-time weekly unemployment filings were up last week as disruptions from the latest Omicron-driven wave of COVID weighed on the labor market recovery. Initial jobless claims rose for the second straight week, coming in near the 300,000 level in a backslide from recent progress in the trajectory of unemployment filings. In December, the figure had reached a 52-year low of 188,000.

Corporate earnings will continue to pour in with Netflix (NFLX) scheduled to kick off tech results after the bell. Travelers (TRV), American Airlines (AAL), and Northern Trust (NTRS) reported results before the open.

The Federal Reserve is in a blackout period ahead of its policy-setting meeting next week but remained in focus as Treasury yields soared in anticipation of the central bank’s move on interest rates. The benchmark 10-year note topped 1.9{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996} on Wednesday to mark the highest level since January 2020 before modestly retreating to 1.85{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996}. Meanwhile, volatility in equities has persisted as investors’ expectations for growth is stymied by the prospect of tightening policy.

“At this stage in the business cycle, it’s less about the level of rates than about the shock in interest rates, and that shock will eventually wear off,” Clearnomics market strategist James Liu told Yahoo Finance Live. “You need a period where the market gets used to the fact that the Fed might have to accelerate interest rates.”

Liu added that worries have been compounded by the Federal Reserve’s game of catch-up, while investors and economists have called for the central bank to act on rising price levels.

Panic over a rise in interest rates is based on two assumptions, according to Commonwealth Financial Network chief investment officer Brad McMillan: The assumption that the increase reflects a problem with the financial markets and the belief that a change in rates suggests a move for the “correct” rates. According to McMillan, both assumptions are wrong.

“This narrative is pretty standard for this stage of the economic cycle,” McMillan said in a note, adding that headlines around potential interest rate hikes and subsequently slower growth and lower stock valuations are missing “context.”

Under the first assumption, any problem with the financial markets stems from the pandemic, and from an economic perspective, is appearing to fade, McMillan explained, adding that an increase signals a recovery from the problem, not an indicator of one. The second assumption, which says recent rates are the correct and normal ones as they are, is incorrect as well, since rates cannot currently be the “right” ones under the circumstances of the pandemic.

“If both of these assumptions are wrong — and they are — the narrative we are seeing in the headlines must be wrong as well,” he said.

In a speech on Wednesday, President Joe Biden said the burden of mitigating inflationary pressures falls mostly on the shoulders of the nation’s central bank. Fed policymakers have acknowledged in recent weeks that they stand ready to do just that.

“We’re not actually surprised by the volatility in markets this year,” Wilmington Trust senior economist Rhea Thomas told Yahoo Finance Live. “You do have a Fed that is expected to raise rates… we do expect the Fed to raise rates by 2-3 hikes this year.”

1:20 p.m. ET: Peloton shares drop after production halt

Peloton (PTON) is pausing production of its connected fitness products as consumer demand declines and the company works to curb costs, according to a report from CNBC, which cited internal documents.

Company shares plunged more than 20{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996} during intraday trading to $25.47 a piece. Shares fell below the company’s September 2019 IPO price of $29.

Per the documents obtained by CNBC, Peloton is expected to pause Bike production for two months, from February to March after already halting production of the more expensive version earlier. Starting next month, the company also plans to suspend manufacturing of its Tread treadmill machine for six weeks.

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12:23 p.m. ET: Stocks advance to recoup earlier losses

Here were the main moves in markets during intraday trading:

  • S&P 500 (^GSPC): +52.56 (+1.16{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996}) to 4,585.32

  • Dow (^DJI): +329.64 (+0.94{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996}) to 35,358.29

  • Nasdaq (^IXIC): +230.73 (+1.61{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996}) to 14,570.99

  • Crude (CL=F): +$0.16 (+0.18{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996}) to $87.12 a barrel

  • Gold (GC=F): +$0.40 (+0.02{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996}) to $1,843.60 per ounce

  • 10-year Treasury (^TNX): +1.1 bps to yield 1.8380{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996}

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10:10 a.m. ET: US home sales dip at year-end 2021

Home sales in the U.S. declined in December to ended 2021 on a low note, but annual sales activity for the entire year reached the highest level since 2006.

National Association of Realtors (NAR) reported that existing home sales fell 4.6{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996} to a seasonally adjusted 6.18 million million units in December from a month earlier. November existing home sales were revised slightly down to 6.46 million from 6.48 million.

The number of sales was down 7.1{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996} from the same month a year ago and came in far below analysts’ expectations of a 0.5{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996} month-over-month decrease to 6.43 million units, according to Bloomberg consensus estimates.

“December saw sales retreat, but the pull back was more a sign of supply constraints than an indication of a weakened demand for housing,” said Lawrence Yun, NAR’s chief economist. Yun also attributed the slowdown in December to rising mortgage interest rates “which can produce mixed results.”

“Some people want to hurry and buy, others want to wait to buy,” he said. “Rising rates will cut into home sales.”

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9:45 a.m. ET: Mercedes-Benz, Luminar partner on self-driving tech

Luxury carmaker Mercedes-Benz is teaming up with self-driving sensor maker Luminar Technologies Inc. (LAZR) to pursue fully-automated driving on highways for its next-generation vehicles.

Shares of Luminar jumped as much as 18{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996} in pre-market trading. The stock was up nearly 10{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996} at open at $14.78 per share. 

The partnership comes as other big automakers gear up to focus on autonomous vehicles, even amid a backdrop of regulatory and technological uncertainty.

“If you want to be able to get to truly autonomous capabilities in a consumer vehicle, and you have to industrialize hardware, software, all of these systems that come into play,” Luminar CEO Austin Russell told Reuters. “It is a completely different kind of business of going from a science and technology business to automotive corporation.”

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9:30 a.m. ET: Nasdaq rebounds after plunging into correction territory

Here were the main moves in markets at open

  • ow (^DJI): +135.67 (+0.39{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996}) to 35,164.32

  • Nasdaq (^IXIC): +151.56 (+1.06{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996}) to 14,491.81

  • Crude (CL=F): -$0.22 (-0.25{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996}) to $86.74 a barrel

  • Gold (GC=F): +$2.90 (+0.16{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996}) to $1,846.10 per ounce

  • 10-year Treasury (^TNX): -0.2 bps to yield 1.8250{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996}

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8:38 a.m. ET: Jobless claims jump amid virus-related disruptions

First-time weekly unemployment filings were up last week as disruptions from the latest Omicron-driven wave of COVID weighed on the labor market recovery.

Initial jobless claims rose for the second straight week, coming in near the 300,000 level in a backslide from recent progress in the trajectory of unemployment filings. In December, the figure had reached a 52-year low of 188,000.

“Given persistent labor shortages, the trend in layoffs should remain downward as businesses try to avoid laying off workers,” Rubeela Farooqi, chief U.S. economist at High Frequency Economics, wrote in a note ahead of Thursday’s report. “However, absenteeism from the Omicron variant could make the weekly data noisy over coming weeks.”

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7:30 a.m. ET: American Airlines gets boost from holiday travel

American Airlines (AAL) reported fourth quarter revenue Thursday morning that modestly beat analyst estimates and a smaller-than-expected loss amid strong travel demand during the holiday season.

The airline’s adjusted net loss fell to $921 million, or $1.42 per share, in the last three months of 2021, from $2.2 billion, or $3.86 per share, a year earlier when COVID-19 stunted air travel. The company’s total operating revenue rose to $9.43 billion from $4.03 billion a year earlier.

“Over the past year, we have experienced periods of high travel demand countered by periods of decreased demand due to new COVID-19 variants,” American Airlines CEO Doug Parker said in the earnings release. “This volatility has created the most challenging planning environment in the history of commercial aviation.”

The company’s stock was down 3.30{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996} to $17.31 a piece in pre-market trading.

An American Airlines commercial aircraft approaches to land at John Wayne Airport in Santa Ana, California U.S. January 18, 2022. REUTERS/Mike Blake

An American Airlines commercial aircraft approaches to land at John Wayne Airport in Santa Ana, California U.S. January 18, 2022. REUTERS/Mike Blake

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7:00 a.m. ET: Contracts on Wall Street’s major indexes bounce back

Here’s how futures fared in pre-market trading before the opening bell:

  • S&P 500 futures (ES=F): +22.75 points (+0.50{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996}), to 4,547.00

  • Dow futures (YM=F): +135.00 points (+0.39{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996}), to 35,045.00

  • Nasdaq futures (NQ=F): +129.25 points (+0.86{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996}) to 15,162.75

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6:01 p.m. ET Wednesday: Stock futures trade sideways after volatile session

Here were the main moves in futures contracts ahead of overnight trading:

  • S&P 500 futures (ES=F): +3.50 points (+0.08{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996}), to 4,527.75

  • Dow futures (YM=F): +43.00 points (+0.12{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996}), to 34,953.00

  • Nasdaq futures (NQ=F): +14.00 points (+0.09{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996}) to 15,047.50

—

Alexandra Semenova is a reporter for Yahoo Finance. Follow her on Twitter @alexandraandnyc

Read the latest financial and business news from Yahoo Finance

Follow Yahoo Finance on Twitter, Instagram, YouTube, Facebook, Flipboard, and LinkedIn

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Stock market news live updates: January 6, 2022

Stocks were mixed Thursday morning after equities did an about-face in the previous session, plummeting from record highs as investors mulled the likelihood of tighter Federal Reserve policy and interest rate hikes as soon as March.

The Dow extended declines to turn negative year-to-date, while the S&P 500 and Nasdaq hovered around their flatline. Wednesday marked a bearish day for markets, spurred by the release of minutes from the Federal Open Market Committee’s (FOMC) meeting December 15 that flagged concerns from policymakers about worsening inflation and signaled more aggressive intervention by the central bank.

“Markets need time to settle, we’ve got earnings season starting in a couple weeks’ time,” OANDA market analyst Craig Erlam told Yahoo Finance Live.“I think that’s when people start to get a better grasp, or at least look at these markets through a more rational lens.”

Renewed pressures in tech amid interest rate worries sent the Nasdaq spiraling 3.1{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996} on Wednesday in its biggest drop since March, and the S&P 500 shed 1.9{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996}, dragged down by losses in real estate. The Dow Jones Industrial Average tumbled more than 1{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996}, falling for the first time this year.

“We actually like tech for all of 2022 in our outlook, but there’s no doubt that tech is going to take it on the chin when the yield curve does what it does,” Wells Fargo CIO of Wealth & Investment Darrell Cronk told Yahoo Finance Live. “[The response to] Fed meeting minutes suggests that long-duration assets like tech or REITs that are interest-rate sensitive will really come under pressure in moments when you believe the Fed is going to take a more hawkish stance.”

The minutes, underscoring this hawkishness, helped the benchmark 10-year Treasury yield top 1.7{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996}, its highest level since April.

“The primary piece of the puzzle is the Fed,” Zephyr market strategist Ryan Nauman told Yahoo Finance Live. “Markets don’t really react too greatly to when the Fed starts hiking rates — it’s the pace — and if the Fed increases the pace of interest rate hikes and there are a couple of surprise hikes in there to tame inflation, that’s when we can really get an impact on equity markets and see a steep pullback.”

Investors weighed a fresh read on initial weekly jobless claims Thursday morning that showed first-time unemployment filings ticked up but remained near a 52-year low last week, signaling continued recovery in the labor market as high demand for workers pours into the new year. The Labor Department’s latest read on initial jobless claims showed 207,000 Americans filed for unemployment in the week ending January 1.

​​Employment figures will remain in the spotlight for the rest of this week. The monthly jobs report due for release on Friday is expected to offer a more meaningful look at the strength of hiring and labor force participation — key measures of the U.S. economy.

Traders also assessed data on Wednesday that showed private payroll gains last month surpassed economist estimates. ADP, whose report sets expectations for Friday’s “official” government jobs numbers, reported private sector employers added back 807,000 jobs during the final month of November, nearly doubling consensus forecasts and suggesting job growth picked up to help relieve some labor shortages.

11:35 a.m. ET: Mortgage rates soar to highest level since May 2020

Mortgage rates rose to their highest level in more than a year and a half after details from the Federal Reserve’s last policy-setting meeting released on Wednesday hardened expectations for a higher interest-rate environment.

The rate on the 30-year fixed mortgage jumped from 3.11{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996} to 3.22{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996} this week, according to Freddie Mac. The increase on the rate — the most common loan used by homebuyers — places it at the highest level since May 2020.

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11:28 a.m. ET: Dow turns negative year-to-date

Here were the main moves in markets as of 11:28 a.m. ET:

  • S&P 500 (^GSPC): +0.85 (+0.02{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996}) to 4,701.43

  • Dow (^DJI): -118.85 (-0.33{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996}) to 36,288.26

  • Nasdaq (^IXIC): +17.53 (+0.12{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996}) to 15,117.70

  • Crude (CL=F): +$1.90 (+2.44{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996}) to $79.75 a barrel

  • Gold (GC=F): -$34.60 (-1.90{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996}) to $1,790.50 per ounce

  • 10-year Treasury (^TNX): +3.4 bps to yield 1.7390{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996}

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11:00 a.m. ET: New orders for U.S.-manufactured goods surge in November

The Commerce Department reported Thursday morning that U.S. factory orders accelerated in November, climbing 1.6{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996} during the month. 

October’s estimate was revised higher to show orders rising 1.2{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996} instead of 1.0{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996} as previously reported.

The agency reported that despite the increase in orders, business spending on equipment likely struggled to rebound in the fourth quarter.

Manufacturing accounts for 11.9{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996} of the economy and is supported by businesses restoring expended inventories.

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10:45 a.m. ET: Rivian tumbles below IPO price

Shares of electric vehicle-market Rivian (RVN) slumped nearly 17{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996}, falling below their IPO price of $78 for the first time amid a broader sell-off in electric vehicle stocks.

The drop also comes one day after rival investor Amazon.com Inc. (AMZN) signed a deal with Fiat and Alfa Romeo carmaker Stellantis NV to develop vans that use the commerce giant’s software and deploy electric delivery vans made by the Italian automaker.

Rivian was down 7.57{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996} to $83.20 per share as of 10:55 a.m. Amazon was mostly flat, trading at about $3,271 a share as of the same time.

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9:30 a.m. ET: Markets see muted open following Fed-prompted sell off

Here were the main moves at the start of Thursday’s trading session:

  • S&P 500 (^GSPC): -1.77 (-0.04{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996}) to 4,698.81

  • Dow (^DJI): -7.92 (-0.02{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996}) to 36,399.19

  • Nasdaq (^IXIC): -57.40 (-0.38{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996}) to 15,042.77

  • Crude (CL=F): +$2.18 (+2.80{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996}) to $80.03 a barrel

  • Gold (GC=F): -$37.10 (-2.03{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996}) to $1,788.00 per ounce

  • 10-year Treasury (^TNX): +2.5 bps to yield 1.7300{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996}

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9:05 a.m. ET: November U.S. trade deficit nears record high

The U.S. is on pace to see its biggest annual trade deficit. 

The Commerce Department reported on Thursday that November’s read jumped to a near-record $80.2 billion, 19.3{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996} higher than the October deficit of $67.2 billion and just below the all-time monthly record of $81.4 billion reported in September.

The agency’s final estimate is set to be reported next month.

—

8:30 a.m. ET: Jobless claims up from prior week but hold at pre-COVID lows

First-time unemployment filings ticked up but remained near a 52-year low last week, signaling continued recovery in the labor market as high demand for workers pours into the new year.

The Labor Department’s latest read on initial jobless claims showed 207,000 Americans filed for unemployment in the week ending January 1. The figure was up from consensus Bloomberg estimates of 195,000 but hovered around the key 200,000 level. The previous week’s print of 198,000 marked the second lowest number of claims during the pandemic.

Continuing claims came in at 1.754 million, compared to an expected 1.678.

“Fortunately for workers, employers have not been in a rush to cut jobs. New claims for unemployment benefits remain near decades-low levels,” Mark Hamrick, senior economic analyst for Bankrate, wrote in an email. “The question remains whether there will be sufficient workers to fill available positions and how many individuals will be willing to re-join the labor force, by working or looking for work.”

7:00 a.m. ET: Futures contracts mixed following Wednesday sell-off

Here were the main moves ahead of market open:

  • S&P 500 futures (ES=F): -0.75 points (-0.02{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996}), to 4,691.75

  • Dow futures (YM=F): +72.00 points (+0.20{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996}), to 36,363.00

  • Nasdaq futures (NQ=F): -70.00 points (-0.44{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996}) to 15,696.50

  • Crude (CL=F): +$0.93 (+1.19{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996}) to $78.78 a barrel

  • Gold (GC=F): -$27.80 (-1.52{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996}) to $1,797.30 per ounce

  • 10-year Treasury (^TNX): +0.00 bps to yield 1.705{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996}

—

6:02 p.m. Wednesday ET: Stock futures open sideways after equities deepen losses

Here were the main moves in markets heading into the overnight session:

  • S&P 500 futures (ES=F): -92.25 points (-1.93{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996}), to 4,692.00

  • Dow futures (YM=F): +33.00 points (+0.09{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996}), to 36,324.00

  • Nasdaq futures (NQ=F): -1.50 points (-0.01{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996}) to 15,765.00

  • Crude (CL=F): -$0.75 (-0.96{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996}) to $77.10 a barrel

  • Gold (GC=F): -$14.30 (-0.78{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996}) to $1,810.80 per ounce

  • 10-year Treasury (^TNX): +2.2 bps to yield 1.705{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996}

—

Alexandra Semenova is a reporter for Yahoo Finance. Follow her on Twitter @alexandraandnyc

Read the latest financial and business news from Yahoo Finance

Follow Yahoo Finance on Twitter, Instagram, YouTube, Facebook, Flipboard, and LinkedIn

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Stock market news live updates: December 31, 2021

U.S. stocks lost steam in a lackluster trading session on Friday, as major indexes closed the last day of 2021 marginally lower, but still within striking distance of record highs made during a banner year.

The S&P 500 treaded water during the session but closed out 2021 up 27{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996}, marking its third year of double-digit gains. The Dow and Nasdaq wavered, but all indices were close to record highs. 

Next year is poised to be another strong year in equities, though strategists anticipate the S&P 500 is unlikely to match the gains it saw in 2021.

The markets will have to weather rising inflation, determine the Federal Reserve’s pace on raising interest rates, and mull President Joe Biden’s second year in office as new COVID-19 cases swamp the U.S. That period is known as the “sophomore slump,” since the second year of a president’s term historically tends to be as much as 40{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996} more volatile than the other three years, according to CFRA research chief investment strategist Sam Stovall. 

“I think that 2022 is going to be a good year that tends to follow a great year,” Stovall told Yahoo Finance Live. “We certainly have a high wall of worry that we’re going to have to scale.”

U.S. equity markets were open on New Year’s Eve for the first time in a decade, thanks to NYSE Rule 7.2. It states that trading is closed either Friday or Monday if a holiday falls on a weekend, with the exception of “unusual business conditions, such as the end of a monthly or yearly accounting period.” 

Markets mostly charged higher this week, even as reports of rising COVID-19 cases pour in across the globe. Swings were exaggerated by low trading volumes, with many on Wall Street on vacation.

The S&P 500 rallied to an intraday high on Thursday before staging a retreat, after hitting its 70th record close of the year Wednesday. Meanwhile, both the energy and real estate sectors of the index saw their best year’s ever.

The index recorded a new all-time high every month this year, making 2021 among its best years ever, according to data published by LPL Research. The only other year it did so was in 2014.

“The huge end of year rally in 2020 was the first clue,” Ryan Detrick, LPL Financial chief market strategist, in a note. 

“Add in a strong first five days, a strong first quarter, the S&P 500 holding above the December lows in the first quarter, and right there you had several signals early in the year that strong returns were quite possible in 2021,” he added.

Insigneo Financial Group CIO Ahmed Riesgo told Yahoo Finance Live that it was actually strong returns by only some companies that contributed to the index’s gains.

“Did the market have a great year in 2021? Most people would say absolutely,” he asserted, though adding it is more accurate to say that a few stocks have done “phenomenally” well, while the vast majority have been in the red.

“I think what you’re going to get next year is that internal rotation where these few stocks that performed very well in 2021 are going to under perform, perhaps drag the market down a bit, while the vast majority of stocks will shoot up,” Riesgo said. “All in all, taken together, this points to around mid- to single-digit returns for the [S&P 500] next year.”

Inflation is expected to be a focal point among investors in the new year. Rising prices have nudged the Fed into a hawkish pivot from its earlier predictions of “transitory inflation.” Now, the central bank is planning a quicker unwinding back of its pandemic-era monetary policies, and has boosted its forecasts for the pace of potential rate hikes.

4:00 p.m. ET: Markets hit a lull in final trading day of 2021

Here’s how markets rounded out the year:

  • S&P 500 (^GSPC): -12.53 (-0.26{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996}) to 4,766.20

  • Dow (^DJI): -59.85 (-0.16{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996}) to 36,338.23

  • Nasdaq (^IXIC): -96.59 (-0.61{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996}) to 15,644.97

  • Crude (CL=F): -$1.55 (-2.01{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996}) to $75.44 a barrel

  • Gold (GC=F): +$16.80 (+0.93{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996}) to $1,830.90 per ounce

  • 10-year Treasury (^TNX): -0.3 bps to yield 1.5120{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996}

—

1:12 p.m ET: 2022 is likely to be good, but not as great as 2021, experts say

If history repeats itself, 2022 may be another strong year for equities.

Truist Advisory Services co-chief investment officer Keith Lerner pointed out that since 1950, when the S&P 500 had a total return of at least 25{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996} in a year, stocks typically advanced in the following year. Across that 71-year period, stocks rose about 82{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996} of the time — or on 14 out of 17 occasions, to be exact.

The two of the three years stocks failed to rise after 25{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996}+ in annual gains were 1981 and 1990, both of which were periods marked by recessions, Lerner indicated. Although he doesn’t expect one in 2022, the investment chief did predict gains were likely to be more modest in the new year after a stellar 2021.

CFRA research chief investment strategist Sam Stovall shared similar sentiments with Yahoo Finance Live.

“I think that 2022 is going to be a good year that tends to follow a great year,” he said. “We certainly have a high wall of worry that we’re going to have to scale,” 

The markets will have to weather rising inflation, determine the Federal Reserve’s pace on raising interest rates, and mull President Joe Biden’s second year in office — a period known as the “sophomore slump,” since the second year of a president’s term historically tends to be as much as 40{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996} more volatile than the other three years, according to Stovall.

—

12:57 p.m ET: Casinos, housing among sectors to watch in the new year

Investors should keep an eye on casino and homebuilder stocks in 2022, Gerber Kawasaki Wealth & Investment Management CEO Ross Gerber recently told Yahoo Finance Live.

The firm’s preview listed MGM (MGM), Lennar (LEN), and Tesla (TSLA) as the top three stocks poised to rise next year.

“MGM is a long-term holding of ours and we’ve been adding to it on the weakness because of Omicron,” Gerber said. “We absolutely believe this is the endgame for [COVID-19] with this winter being sort of one of the tougher winters again, but as each winter rolls on, this will become much more normal and much less disruptive.”

Gerber also predicted that home builders, citing Lennar (LEN) as an example, will continue to benefit from outsized demand for housing despite some recent supply chain issues. 

Tesla, which was mostly muted in middy trading at $1,070.35 per share, was Gerber’s number one pick for investors in 2022.

“I think over the next decade, Tesla will be the most consequential company in the history of business,” Gerber said. “I think in 12 months, we’re going to see amazing breakthroughs in AI and technology, and what Elon has done yet, we don’t know — you want to own stock in this future.”

—

12:21 p.m ET: PayPal poised for worst year since Ebay spinoff

PayPal Holdings, Inc. (PYPL) is on pace for its biggest annual decline since it was spun off by Ebay in 2015. The company’s shares have fallen 19{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996} this year, making it the worst performer in the S&P 100, according to Bloomberg data.

The online payments provider was down ~1.25{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996} in the early afternoon to about $189.48 per share.

PayPal shares have fallen around 30{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996} since the company began exploring a deal to acquire Pinterest. However, the company walked back on its plan to buy the social media platform, stating in October that it was no longer pursuing the acquisition.

Buy-now, pay-later platforms have also placed pressure on PayPal and its peers in the payments sector during the second half of 2021 amid concerns over competition. 

—

12:05 p.m. ET: Air travel chaos continues amid virus-related disruptions

Airline stocks recouped some of this week’s losses in intraday trading but remain under pressure as flight cancellations and delays persist.

As of early Friday, over 1,100 U.S. flights, both within the country and entering or departing it, were cancelled, worsening an already ugly week for holiday air travel disrupted by a sharp increase in COVID-19 infections among pilots and crew members.

“It’s a controlled meltdown, put it that way,” Boyd Group International president Mike Boyd told Yahoo Finance earlier this week. Airlines “know where they’re going to be short pretty much ahead of time, and then they have to adjust for it.”

Shares of JetBlue Airways Corporation (JBLU) of Delta Air Lines (DAL) were mostly flat in midday trading at $14.26 and $39.04, respectively. American Airlines (AAL) was down 0.54{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996} to $17.97 per share, along with United Airlines (UAL), which ticked 0.48{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996} lower to $43.92.

Meanwhile, Delta updated its policies for workers who get infected with COVID-19 to shorten the isolation period, in accordance with new guidance from the CDC that halves the recommended quarantine time from 10 to five days.

—

9:30 a.m ET: Stocks waver as rally fades

Here were the main moves by the major averages at today’s open:

  • S&P 500 (^GSPC): -4.44 (-0.09{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996}) to 4,774.29

  • Dow (^DJI): -27.53 (-0.08{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996}) to 36,370.55

  • Nasdaq (^IXIC): -24.65 (-0.16{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996}) to 15,741.56

  • Crude (CL=F): -$0.77 (-1.00{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996}) to $76.22 a barrel

  • Gold (GC=F): +$12.10 (+0.67{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996}) to $1,826.20 per ounce

  • 10-year Treasury (^TNX): -1.3 bps to yield 1.5020{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996}

—

7:00 a.m ET: Contracts on the S&P, Dow, and Nasdaq dip ahead of final trading session

Here’s how futures fared ahead of the year’s last market open:

  • S&P 500 futures (ES=F): =13.75 points (-0.29{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996}), to 4,758.50

  • Dow futures (YM=F): -106.00 points (-0.29{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996}), to 36,185.00

  • Nasdaq futures (NQ=F): -53.75 points (-0.33{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996}) to 16,376.50

—

6:00 p.m. ET Wednesday: Futures inch higher after markets close in the red

Here’s how contracts on the major indexes fared ahead of 2021’s final trading day:

  • S&P 500 futures (ES=F): 2.50 points (0.05{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996}), to 4,774.75

  • Dow futures (YM=F): 14.00 points (0.04{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996}), to 36,305

  • Nasdaq futures (NQ=F): 10.50 points (0.06{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996}) to 16,440.75

—

Alexandra Semenova is a reporter for Yahoo Finance. Follow her on Twitter @alexandraandnyc

Read the latest financial and business news from Yahoo Finance

Follow Yahoo Finance on Twitter, Instagram, YouTube, Facebook, Flipboard, and LinkedIn

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Stock market news live updates: December 30, 2021

U.S. stocks edged higher on Thursday after the S&P 500 and Dow each extended a rally to close at all-time highs in the previous session amid a thinly-traded last week of 2021 on Wall Street.

The Dow, S&P, and Nasdaq ticked up in intraday trading, as investors weighed fresh jobs data out of Washington and rising cases of COVID-19. Global daily cases hit a record earlier this week, with infections from the highly-transmissible Omicron variant — found to spread 70 times faster than previous strains — comprising much of the newly tracked positive tests. Recent developments indicating that Omicron may cause milder disease helped markets shake off earlier concerns.

“Perversely, bad news around Omicron might be good news for the markets because it gives the Fed the impetus to continue with these very loose monetary policies,” Opimas LLC Chief Executive Officer Octavio Marenzi told Yahoo Finance Live. “Too much good news for the real economy might actually be quite bad for the markets.”

While markets mostly powered on, travel stocks were impacted by virus-related developments.

JetBlue Airways Corp (JBLU) said it expects to cut 1,280 flights, scaling down its schedule due to a surge in personnel who have fallen sick. The company’s stock turned red, down -0.21{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996} in early afternoon trading to $14.35 per share. Delta Air Lines (DAL) reported cancellations of an additional 250 flights on Wednesday after thousands of halted and delayed flights by major airlines reported during the Christmas weekend. Airline stocks have taken a hit all week amid growing flight disruptions caused by the latest virus wave and winter weather.

Delta ended Wednesday’s trading session -1.19{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996} down to $39.16 and American Airlines (AAL) closed down 2.64{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996} to $18.05 per share. United Airlines (UAL) saw the session end 1.86{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996} lower at $44.3,

“It’s a controlled meltdown, put it that way,” Boyd Group International president Mike Boyd told Yahoo Finance. Airlines “know where they’re going to be short pretty much ahead of time, and then they have to adjust for it.”

Cruise line operators also edged lower after the CDC advised people to avoid cruise travel, regardless of vaccination status, following an increase in onboard COVID-19 cases. Norwegian Cruise Line Holdings (NCLH) shed 1.85{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996} to $21.18 per share. Carnival Corp. (CCL) declined 0.84{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996} to trade at $20.61 a piece, and Royal Caribbean Cruises (RCL) traded down 0.55{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996} to $77.79.

Economic and earnings calendars remain light for the final two trading days of the year, though investors turned their attention Thursday morning to fresh data out of Washington on weekly jobless claims.

The Labor Department released its latest report on initial and continuing jobless claims. First-time unemployment filings fell further from last week’s reading, coming in at 198,000 — below the expected 206,000. Earlier in December, jobless claims fell to 188,000 — its lowest level since 1969.

Meanwhile, in a regulatory filing on Thursday, Samsung BioLogics denied earlier reports that Samsung Group was in talks to acquire U.S. drugmaker Biogen Inc. (BIIB), which was in the spotlight on Wednesday after shares of the drugmaker surged during intraday trading following a report by the Korea Economic Daily, which cited investment banking sources. The report said Biogen approached Samsung to buy its shares in a deal that could be valued at more than $42 billion.

Biogen’s stock was down 8.05{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996} to $237.51 per share as of 1:04 p.m. ET on Thursday. 

1:05 p.m. ET: FDA poised to OK boosters for ages 12-15

The U.S. Food and Drug Administration is planning to authorize booster doses of Pfizer-BioNTech’s coronavirus vaccine for 12- to 15-year-olds, according to a report from the New York Times.

U.S. regulators are also likely to reduce the time frame for booster eligibility to allow both adolescents and adults get an extra shot of Pfizer’s vaccine five months after receiving a second dose instead of the current period of six months, the New York Times said.

Shares of Pfizer (PFE) were up just shy of 1{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996} to $58.15 per share.

—

12:45 p.m. ET: Cruise line stocks decline after new CDC recommendation

The Centers for Disease Control and Prevention advised people to avoid cruise travel, regardless of vaccination status, following an increase in onboard COVID-19 cases.

Cruise ship operators ticked down in midday trading, Norwegian Cruise Line Holdings (NCLH) shed 1.85{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996} to $21.18 per share.

Carnival Corp. (CCL) declined 0.84{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996} to trade at $20.61 a piece, and Royal Caribbean Cruises (RCL) traded down 0.55{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996} to $77.79.

—

12:39 p.m. ET: Markets power on amid lightly-traded week

Here were the main moves in markets as of 12:39 p.m. ET:

  • S&P 500 (^GSPC): +6.08 (+0.13{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996}) to 4,799.14

  • Dow (^DJI): +9.20 (+0.03{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996}) to 36,497.83

  • Nasdaq (^IXIC): +86.10 (+0.55{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996}) to 15,852.32

  • Crude (CL=F): +$0.33 (+0.43{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996}) to $76.89 a barrel

  • Gold (GC=F): +$8.50 (+0.47{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996}) to $1,814.30 per ounce

  • 10-year Treasury (^TNX): -2.1 bps to yield 1.5220{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996}

—

12:20 p.m. ET: JetBlue axes 1,280 January flights

JetBlue Airways Corp (JBLU) is expected to cut 1,280 flights, scaling down its schedule due to a surge in personnel who have fallen sick from COVID-19. The company’s shares traded at $14.43 a piece in the midday session, up by a modest 0.31{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996}.

The airline will allow customers with any type of ticket to change or cancel their travel through January. JetBlue which, anticipated to fly 6,204 flights and offer nearly one million seats in January before the cuts, will now see fewer flights in the first month of 2022 than it did in December, which had 5,538 flights and 832,942 seats scheduled.

Airline stocks have taken a hit all week amid growing flight disruptions caused by rising COVID-19 cases and winter weather.

“It’s a controlled meltdown, put it that way,” Boyd Group International president Mike Boyd told Yahoo Finance. Airlines “know where they’re going to be short pretty much ahead of time, and then they have to adjust for it.”

—

9:31 a.m. ET: Stocks charge ahead to extend gains

Here were the main moves in markets at open:

  • S&P 500 (^GSPC): +5.93 (+0.12{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996}) to 4,798.99

  • Dow (^DJI): +103.36 (+0.28{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996}) to 36,591.99

  • Nasdaq (^IXIC): -8.96 (-0.06{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996}) to 15,757.26

  • Crude (CL=F): +$0.23 (+0.30{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996}) to $76.79 a barrel

  • Gold (GC=F): -$2.50 (-0.14{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996}) to $1,803.30 per ounce

  • 10-year Treasury (^TNX): -1.6 bps to yield 1.5270{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996}

—

8:50 a.m. ET: Tesla issues recalls on Model 3 and Model S cars

Tesla Inc (TSLA) has recalled more than 475,000 Model 3 and Model S electric cars, according to the U.S. National Highway Traffic Safety Administration (NHTSA).

The recall was attributed to two safety-related concerns, including trunk issues with the vehicles and for Model 3s, rearview cameras mounted on these units that might malfunction.

Shares of Tesla fell as much as 2.2{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996} during Wednesday trading after CEO Elon Musk sold another $1 billion of company stock.

—

8:30 a.m. ET: Jobless claims hover near pre-pandemic lows

The Labor Department released its latest report on initial and continuing jobless claims. First-time unemployment filings fell further from last week’s reading, coming in at 198,000 — below the expected 206,000. Earlier in December, jobless claims fell to — 188,000 its lowest level since 1969. 

Continuing claims for the week ended Dec. 18 came in at 1.716 million, also beating expectations of 1.875 million and below the prior week.

—

7:10a.m. ET: Futures remain muted ahead of trading day

  • S&P 500 futures (ES=F): +8.50 points (+0.15{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996}), to 4,793.00

  • Dow futures (YM=F): +50.00 (+0.14{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996}), to 36,431.00

  • Nasdaq futures (NQ=F): +0.39 points (+0.24{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996}) to 16,529

—

6:01 p.m. Wednesday ET: Contracts on the S&P, Dow, and Nasdaq open sideways

  • S&P 500 futures (ES=F): +0.50 points (+0.01{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996}), to 4,785.00

  • Dow futures (YM=F): +3.00 (+0.01{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996}), to 36,384.00

  • Nasdaq futures (NQ=F): -0.25 points (0.00{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996}) to 16,490.25

—

Alexandra Semenova is a reporter for Yahoo Finance. Follow her on Twitter @alexandraandnyc

Read the latest financial and business news from Yahoo Finance

Follow Yahoo Finance on Twitter, Instagram, YouTube, Facebook, Flipboard, and LinkedIn

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Live Updates: Latest Inflation, Business and Stock Market News

Credit score…Gabby Jones for The New York Instances

The Supreme Court explained on Wednesday night that it would hold a special hearing upcoming thirty day period to evaluate the legality of two initiatives at the coronary heart of the Biden administration’s endeavours to deal with the coronavirus in the place of work.

The court explained it would go with extraordinary pace on the two actions, a vaccine-or-screening mandate aimed at large businesses and a vaccination prerequisite for certain well being treatment personnel, environment the instances for argument on Friday, Jan. 7. The justices experienced not been scheduled to return to the bench right up until the subsequent Monday.

Both equally sets of instances experienced been on what critics connect with the court’s shadow docket, in which the courtroom decides crisis applications, at times on issues of excellent consequence, without having comprehensive briefing and argument. The court’s decision to listen to arguments on the apps may perhaps have been a reaction to mounting criticism of that exercise, Adam Liptak stories for The New York Times.

The much more sweeping of the two steps, directed at enterprises with 100 or additional staff members, would affect extra than 84 million personnel and is central to the administration’s initiatives to handle the pandemic. The administration believed that the measure would result in 22 million men and women to get vaccinated and protect against 250,000 hospitalizations.

The next measure calls for wellbeing treatment workers at hospitals that receive federal dollars to be vaccinated from the virus. It “will save hundreds or even hundreds of life each thirty day period,” the administration wrote in an crisis application.

The Supreme Court docket has repeatedly upheld state vaccine mandates in a variety of options in opposition to constitutional difficulties. But the new conditions are unique, mainly because they mostly present the query of no matter if Congress has approved the government department to institute the needs.

The respond to will typically convert on the language of the relevant statutes, but there is purpose to consider that the court’s 6-justice conservative the greater part will be skeptical of wide assertions of government electrical power.

The very last time the Supreme Courtroom deemed a Biden administration application addressing the pandemic — a moratorium on evictions — the justices shut it down.

“Our program does not permit organizations to act unlawfully even in pursuit of fascinating finishes,” the court docket stated in August in an unsigned view, over the dissents of the a few liberal justices.

The vaccination-or-tests requirement for massive employers was issued in November by the Labor Department’s Occupational Safety and Well being Administration, or OSHA.

Businesses are authorized to give their employees the solution to be tested weekly alternatively of getting the vaccine, however they are not expected to spend for the tests. The rule helps make an exception for staff who do not occur into near make contact with with other folks at their positions, like all those who function at residence or completely outdoor.

Less than a 1970 law, OSHA has the authority to problem unexpected emergency policies for workplace safety, presented it can clearly show that workers are uncovered to a grave hazard and that the rule is needed.

States, firms and spiritual teams challenged the evaluate in appeals courts about the nation, and a unanimous three-decide panel of the U.S. Court of Appeals for the Fifth Circuit, in New Orleans, had ruled in favor of some of the challengers, blocking the measure.

Past 7 days, following the difficulties had been consolidated right before the U.S. Court of Appeals for the Sixth Circuit, in Cincinnati, a divided 3-choose panel reinstated the measure.

Almost quickly, more than a dozen challengers requested the Supreme Court docket to block the evaluate. Read through THE Whole Report →

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Stock market news live updates: December 14, 2021

Markets edged lower in early trading Tuesday following declines in yesterday’s session as investors tune in for on a prolific week in Washington that includes the Federal Reserve’s final policy-setting meeting of 2021, set to commence today, and the release of new prints on retail sales, housing starts and other economic data.

All three major U.S. indexes were down amid figures from the Department of Labor that showed wholesale prices soared by a record 9.6{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996} in November from a year earlier, the fastest annual pace on record for the indicator.

Traders are awaiting a decision from the Fed on how quickly the central bank will tighten monetary policy amid a backdrop of fresh inflation numbers that reflected the fastest annual increase in nearly four decades. The Labor Department’s Consumer Price Index (CPI) soared 6.8{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996} in November compared to last year, according to figures published last week.

The Federal Open Market Committee (FOMC) is scheduled to hold its two-day policy-setting meeting starting on Tuesday, followed by the release of the monetary policy statement and remarks from Federal Reserve Chair Jerome Powell Wednesday. An updated Summary of Economic Projections outlining individual members’ outlooks for economic conditions and interest rates is set to accompany the statement.

The Fed has been under pressure to control rising inflation levels, as investors watch for clues of a faster taper that could set the stage for earlier rate hikes.

“Because inflation expectations do appear to be adaptive, our view is that the longer inflation stays elevated, the greater the risk that consumers adjust their behaviors in a way that contributes to persistently elevated inflation” wrote PIMCO economist Tiffany Wilding in a recent note to clients.

“We believe the Fed will want to manage this risk by shortening the time over which it winds down its purchases of U.S. Treasuries and agency mortgage-backed securities (MBS), aiming to end the program in March 2022, while also signaling a June rate hike is likely,” said Wilding.

PIMCO managing director and portfolio manager Sonali Pier also separately told Yahoo Finance Live that the firm expects to see two hikes in 2022, three hikes in 2023, and potentially four in 2024, with the Fed trying to bring the policy rate to neutral.

“Amid proliferating signs of solid growth and a robust job market, various measures depict a deeply troubled economy,” wrote Oxford Economics senior economist Bob Schwartz in a new report. “Households are downbeat, according to sentiment surveys, and the so-called ‘misery index‘ that adds together inflation and unemployment hovers around recession levels.”

Markets await a trove of fresh economic data this week. November retail sales, out on Wednesday, are expected to rise by 0.8{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996}, according to Bloomberg consensus estimates. And November housing starts are forecasted to see a month-over-month increase of 3.3{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996}.

Meanwhile, Morgan Stanley projects the U.S. unemployment rate will drop to 3{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996} in 2022.

“It’s stunning to see how much the rate has fallen in the last five months,” Morgan chief U.S. economist Michael Feroli told Yahoo Finance Live. “We expect that pace of decline to slow, but it doesn’t take much to get below 4{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996}, even with a tick up in the labor participation rate which has been depressed over the last year and a half.”

12:05 p.m. ET: Microsoft posts biggest drop since 2020

Shares of Microsoft (MSFT) were down more than 4{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996} in midday trading, contributing to the Dow’s losses as the broader markets edged lower.

The software giant posted its biggest drop since last October, according to Bloomberg data, adding to yesterday’s loss of nearly 1{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996} at close.

Separately, J.P. Morgan released fresh research on Tuesday that said investors overlook Microsoft’s leading position in data management. Data platform solutions contributed to about 12{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996} of Microsoft’s total revenue in 1H21, up from roughly 10{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996} in 2017, according to the bank’s note, which also said much of the company’s growth is driven by cloud data platforms that grew from about 3{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996} of total revenue to about 7{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996} in the same time period. J.P. Morgan expects this to be a key source of upside heading into 2022.

Microsoft had a year of stunning numbers that made it Yahoo Finance’s company of the year. The tech heavy weight passed a $2 trillion market capitalization in June and reported a $176 billion surge in revenue — a nearly 20{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996} year-over-year increase.

11:13 a.m. ET: Dow reverses comeback, shedding more than 100 points

Here were the main moves in markets as of 11:13 a.m. ET:

  • S&P 500 (^GSPC): -52.68 (-1.13{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996}) to 4,616.29

  • Dow (^DJI): -121.43 (-0.34{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996}) to 35,529.52

  • Nasdaq (^IXIC): -279.60 (-1.81{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996}) to 15,133.68

  • Crude (CL=F): -$1.00 (-1.40{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996}) to $70.29 a barrel

  • Gold (GC=F): -$12.10 (-0.68{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996}) to $1,776.20 per ounce

  • 10-year Treasury (^TNX): +2.6 bps to yield 1.4500{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996}

11:01 a.m. ET: Meme-stock darling AMC extends decline

Shares of AMC Entertainment Holdings Inc. (AMC) were down 2.19{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996}, trading at $22.73 a piece, though recouping some losses after falling as much as 11{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996} at the open. The company was hit hard in Monday’s sell-off along with other retail favorites, including Bed Bath & Beyond Inc. (BBY) and Tesla (TSLA).

The losses come as investors expect a rollback of pandemic-era stimulus by the Federal Reserve, putting risky assets and tech companies under pressure.

Retail investors comprise 20{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996}-30{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996} of trading volume, according to research from J.P. Morgan—a change from last year when these traders were seen as small-time market players.

10:17 a.m. ET: Dow turns green following tumble

Here were the main moves in markets as of 10:17 a.m. ET:

  • S&P 500 (^GSPC): -32.00 (-0.69{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996}) to 4,636.97

  • Dow (^DJI): +16.28 (+0.05{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996}) to 35,667.23

  • Nasdaq (^IXIC): -200.53 (-1.30{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996}) to 15,212.75

  • Crude (CL=F): -$0.72 (-1.01{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996}) to $70.57 a barrel

  • Gold (GC=F): -$13.10 (-0.73{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996}) to $1,775.20 per ounce

  • 10-year Treasury (^TNX): +3.9 bps to yield 1.4630{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996}

9:30 a.m. ET: Markets open lower ahead of Fed decision

Here were the main moves in markets as of 9:30 a.m. ET:

  • S&P 500 (^GSPC): -36.88 (-0.79{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996}) to 4,632.09

  • Dow (^DJI): -141.06 (-0.40{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996}) to 35,509.89

  • Nasdaq (^IXIC): -217.32 (-1.39{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996}) to 15,413.28

  • Crude (CL=F): -$0.92 (-1.29{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996}) to $70.37 a barrel

  • Gold (GC=F): -$20.90 (-1.17{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996}) to $1,767.40 per ounce

  • 10-year Treasury (^TNX): +2.7 bps to yield 1.4510{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996}

9:05 a.m. ET: Stock futures tick down

Here were the main moves in futures trading Tuesday morning:

  • S&P 500 futures (ES=F): -28.50 points (-0.64{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996}), to 4,640.25

  • Dow futures (YM=F): -100 points (-0.28{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996}), to 35,545

  • Nasdaq futures (NQ=F): -170 points (-1.06{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996}) to 15,912

8:48 a.m. ET: Wholesale inflation surges 9.6{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996}

Wholesale prices soared by a record 9.6{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996} in November from a year earlier, the fastest annual pace on record for the indicator and a sign inflation pressures are likely to persist well into 2022.

The Labor Department reported Tuesday that its producer price index rose 0.8{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996} in November after a 0.6{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996} monthly gain in October. The figure, which measures inflation before it reaches consumers, marked the highest monthly reading in four months.

Food prices jumped 1.2{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996} in November after falling 0.3{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996} in October. Energy prices were up 2.6{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996} after a 5.3{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996} percent rise October.

7:07 a.m. ET: Stock futures mixed

Here were the main moves in markets in early trading Tuesday:

  • S&P 500 futures (ES=F): -8.25 points (-0.18{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996}), to 4,660.5

  • Dow futures (YM=F): +22.00 points (0.06{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996}), to 35,667

  • Nasdaq futures (NQ=F): -85.25 points (0.53{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996}) to 15,996.75

6:00 p.m. Monday ET: Stock futures edge higher

Here were the main moves in markets in late trading on Monday:

  • S&P 500 futures (ES=F): +5.50 points (0.12{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996}), to 4,674.25

  • Dow futures (YM=F): +46.00 points (0.13{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996}), to 35,691

  • Nasdaq futures (NQ=F): +10.75 points (0.07{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996}) to 16,092.75

—

Alexandra Semenova is a reporter for Yahoo Finance. Follow her on Twitter @alexandraandnyc

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