Here are the top news, trends and analysis that investors need to start their trading day:
1. Wall Street looks higher after a two-session technical recovery
Traders on the floor of the New York Stock Exchange, January 10, 2022.
US stock futures gained upward momentum on Wednesday after another hot but expected inflation report.
- The Nasdaq rose on Tuesday for a second session as technology stocks continued their recovery. The index rose 1.4% as bond yields stabilized, relieving some pressure from growth-oriented names, which appear to have found a foothold after a difficult start to the new year.
- The S&P 500 is up nearly 1%, breaking a five-session streak of losses.
- The Dow Jones Industrial Average rose 0.5%, ending a four-session streak of decline.
- The S&P 500 and Dow on Tuesday finished nearly 1.8% and 1.5% away, respectively, from their record closes last week. The Nasdaq finished 5.6% away from its record close in November.
2. Consumer prices rise at their fastest rate since 1982, but matches estimates
The government’s December CPI on Wednesday showed a 7% year-on-year increase, in line with estimates and the largest increase since 1982. Core CPI, which does not include food and energy, rose 5.5% on an annual basis, slightly above expectations. . The 10-year Treasury yield fell to nearly 1.72% on Wednesday following the data and after rising this year to more than 1.8% earlier this week.
3. Fed Chairman Powell says tightening policy is needed to control inflation
US Federal Reserve Chairman Jerome Powell speaks during his re-nomination hearing for the Senate Committee on Banking, Housing, and Urban Affairs on Capitol Hill, in Washington, US, January 11, 2022.
Graeme Jennings | Reuters
Federal Reserve Chairman Jerome Powell, with an apparently clear path to a second term at the helm of the central bank, declared that the US economy is healthy and needs tighter monetary policy to control inflation. That will likely mean raising interest rates this year, reducing monthly asset purchases and reducing the Federal Reserve’s balance sheet. Powell made the comments during the confirmation hearing, during which key senators indicated they would support him for a second term.
4. Omicron may be heading for a rapid decline in Britain and the United States
A patient with coronavirus (Covid-19) lies under a tube in his isolation room in the intensive care unit (ICU) at Western Reserve Hospital in Cuyahoga Falls, Ohio, US, January 4, 2022.
Shannon Stapleton | Reuters
Scientists are seeing signs that the rapidly spreading Covid omicron variant may have peaked in Britain and may be poised to do the same in the US Omicron has proven so contagious that it may actually run out of people to infect it, just a month and a half after it was first discovered In South Africa. The highly influential University of Washington model predicts that the number of cases reported per day in the United States will reach 1.2 million by January 19 and then begin to decline sharply. The average daily new infections for seven days were 747,267, according to a CNBC analysis of Johns Hopkins University data.
5. Biden is sending more Covid tests to schools to keep them open
Students leave Darwin Elementary School in Chicago’s Logan Square neighborhood on Monday, January 3, 2022, the first day back to school from the Chicago Public Schools winter break.
Brian Casella | Tribune News Service | Getty Images
The White House is increasing federal support for Covid testing for schools in an effort to keep them open as the omicron variant spreads across the United States. Available to schools starting this month. This effort aims to alleviate supply shortages and promote safety in schools. This is in addition to the more than $10 billion earmarked for school testing authorized in the Covid Relief Act.
The Associated Press contributed to this report. Follow all market movements like a pro CNBC PRO. Get the latest news on the epidemic with CNBC’s coronavirus coverage.