Finance

Stock market news live updates: January 11, 2022

Wall Street’s major indexes closed in the green on Tuesday after returning from earlier losses as investors weighed Federal Reserve Chair Jerome Powell’s testimony.

The Nasdaq rose for the second consecutive session to close 1.4% higher at 15,153.45, while the Dow Jones jumped 180 points. The S&P 500 also recovered from the morning decline to close in positive territory.

Federal Reserve Chairman Jerome Powell told Congress in his affirmation testimony Tuesday that if the pace of rate increases fail to slow, the central bank will get bolder as short-term borrowing costs increase.

“If we see inflation continuing at high levels, for longer than expected, and if we have to raise rates more over time, we will,” Powell said at a hearing before the Senate Banking Committee.

“Investors in stock markets are assuming that inflation is coming down at least low enough not to bother stocks too much,” Simeon Heymann, global investment analyst at ProShares, told Yahoo Finance Live. “But the Fed’s activity needs to be divided into two parts.”

“Before you start raising interest rates, you have to talk about tapering and new news in the past 10 days — an accelerated deconstruction of the balance sheet,” he added, noting that this could determine price hikes in the long run regardless of whether inflation comes down. Independently of how quickly the Fed raises interest rates.

“Ultimately, these measures may mean that there is no need for a lot of price increases,” Heymann said.

Central bank monetary policy will remain in focus this week, highlighting the latest Consumer Price Index (CPI) released by the Bureau of Labor Statistics (BLS) as investors continue to gauge inflationary pressures and the Fed’s potential response.

Another interesting reading on the latest number is expected, with economists expecting a 7.1% reading in December based on Bloomberg Consensus data, up more than November’s 6.8% year-over-year segment.

Concerns about sooner-than-expected interest rate increases tempered investor optimism as the new year approaches, putting stock markets in a risk-isolated state so far in 2022. Meanwhile, Treasury yields have soared, with the 10-year yield approaching The benchmark is 1.8%, the highest since January 2020.

“We are seeing a reassessment of what the Fed will do,” Stephen Whiting, chief global investment analyst at Citi Private Bank, told Yahoo Finance Live.

“The possibility is very clear that the Fed will succeed in bringing down inflation,” Whiting said. “It was going to happen one way or another and we’re just trying to collect how active the Fed is doing that.”

Goldman Sachs, Evercore ISI and Deutsche Bank are among the Fed’s watchers re-pricing the Fed’s pace of rate hikes. Companies recently projected that short-term interest rates would be 100 basis points higher by the end of 2022 than they are now.

“We are revising our forecasts for the Federal Reserve once again given low unemployment, strong wages, and an anticipation of higher inflation again,” Evercore ISI’s Krishna Guha said in a note.

In an interview with CNBC on Monday, JPMorgan CEO Jamie Dimon said he hopes for a “soft landing” by the central bank as it prepares to start raising the federal funds rate in March.

“It’s going to be like a thread of a needle,” Dimon said, though he added that potential inflation is worse than the Fed thinks and interest rates could be raised more than currently expected.

NEW YORK, NY – JANUARY 7: Traders work on the floor of the New York Stock Exchange (NYSE) on January 7, 2022 in New York City. Markets fell slightly in morning trading as investors reacted to the government jobs report which showed that the US economy added much fewer jobs than expected in December. (Photo by Spencer Platt/Getty Images)

“I would personally be surprised if it was only four increases,” Damon said. “Four increases of 25 basis points is a very small amount, and it is very easy for the economy to absorb.”

Bank earnings are also underway, with BlackRock (BLK), Citigroup (C), JPMorgan Chase (JPM) and Wells Fargo (WFC) due to report fourth-quarter results before the market opens on Friday.

4:00 PM ET: Stocks end in positive territory after losing streak

Here’s how the major indices wrapped up Tuesday’s trading session:

  • Standard & Poor’s 500 (^ Salafist Group for Preaching and Combat): +42.81 (+0.92%) to 4713.10

  • dow (^ DJI): +182.89 (+0.51%) to 36251.76

  • Nasdaq (^ ninth): +210.62 (+1.41%) to 15153.45

  • raw (CL = F.): +$3.18 (+4.06%) to $81.41 per barrel

  • gold (GC = F.): + $23.20 (+1.29%) to $1,822.00 per ounce

  • Treasury for 10 years (^ degeneration): -3.4 basis points to produce 1.7460%

11:27 a.m. ET: S&P 500 recovers earlier losses, Nasdaq climbs to session high

Here are the major moves in the markets as of 11:27 a.m. ET:

  • Standard & Poor’s 500 (^ Salafist Group for Preaching and Combat): +9.53 (+0.20%) to 4679.82

  • dow (^ DJI): -50.71 (-0.14%) to 36.018.16

  • Nasdaq (^ ninth): +112.41 (+0.75%) to 15055.24

  • raw (CL = F.): + $2.64 (+3.37%) to $80.87 per barrel

  • gold (GC = F.): + $14.70 (+0.82%) to $1,813.50 per ounce

  • Treasury for 10 years (^ degeneration): -1.2 basis points for 1.7680%

11:13 a.m. ET: US-listed Chinese stocks rise after upbeat trade talks

Chinese stocks rose in the United States as officials pledged to stabilize trade and called on financial institutions to increase credit support for companies, according to Bloomberg.

The Nasdaq Golden Dragon China (^HXC) is up as much as 4.7% in morning trading after dropping more than 45% over the past year, according to Bloomberg data.

Big-cap Chinese technology stocks saw the biggest moves: Alibaba (BABA) rose 3.74% to $133.10 a share, JD.com (JD) rose 8.83% to $75.75 a share, and Pinduoduo (PDD) rose 6.91% to 60.93 dollars per share. DiDi (DIDI) rose 5.34% to trade at $4.73.

11:00 a.m. ET: Stocks tumble amid inflation talk in Powell’s testimony

Federal Reserve Chairman Jerome Powell said the central bank will raise interest rates further over time if necessary to tame high rate levels as he answered questions during the confirmation hearing before the Senate Banking Committee.

“We will use our tools to bring back inflation,” he told policymakers.

The Dow Jones Industrial Average was down more than 250 points in early trading, while the S&P 500 and Nasdaq were also down, losing steam after returning on Monday afternoon.

10:28AM ET: Intel taps Micron exec for CFO role

Intel (INTC) analysts have given the chipmaker a nod in its move to hire David Zinsner (MU) of Micron to serve as chief financial officer as part of a broader turnaround by CEO Pat Gelsinger.

“Intel now has a ‘dream team,’ with ‘one of the best CEOs and one of the best CFOs in the semiconductor industry,’” said Citi analysts. Zinsner achieved higher operating margins at every public company he was a CFO.

However, Intel continues to face challenges as it struggles with manufacturing delays and market share losses.

Micron shares are down 1.3% and 0.80% at $93.14 a piece as of 10:28 a.m. Intel shares are up 0.71% to $55.60 a share.

9:30 a.m. ET: Markets struggle for direction after Monday’s tech recovery

Here’s how US stocks perform when the market opens:

  • Standard & Poor’s 500 (^ Salafist Group for Preaching and Combat): -0.07 (-0.00%) to 4,670.22

  • dow (^ DJI): +21.91 (+0.06%) to 36,090.78

  • Nasdaq (^ ninth): +6.93 (+0.05%) to 14942.83

  • raw (CL = F.): +1.53 dollars (+1.96%) to 79.76 dollars per barrel

  • gold (GC = F.): + $2.90 (+0.16%) to $1,801.70 per ounce

  • Treasury for 10 years (^ degeneration): -0.2 basis points for 1.7780%

7:35AM ET: Small business confidence sees modest rise

Small business sentiment in the US saw a slight increase in December, even amid rising inflation and labor shortage concerns.

The National Federation of Independent Business reported that its Small Business Optimism Index rose 0.5 point to 98.9 last month. Among small business owners who responded to the enterprise survey, 22% said inflation was their main operational concern — up from 18% in November.

Despite concerns about inflation, 57% of survey respondents, 2% fewer business owners from the previous month, reported plans to raise prices, and the proportion of parent operators and residents who plan to do so fell five points to 49%.

On the employment front, 49% of owners said they had unfilled vacancies, up one point from November.

7:00 AM ET: Markets look to extend comeback as futures rise

Here are the main moves in the markets ahead of Tuesday’s open:

  • S&P 500 futures contractsES = F.): +15.50 points (+0.33%) to 4,677.75 points

  • Dow futures contractsYM = F.): +78.00 points (+0.22%) to 36.030.00

  • Nasdaq futures contractsNQ = F.): +70.25 points (+0.45%) to 15,678.25

  • raw (CL = F.): +0.25 dollars (+0.32%) to 78.48 dollars per barrel

  • gold (GC = F.): + $1.20 (+0.07%) to $1,800.00 per ounce

  • Treasury for 10 years (^ degeneration): unchanged to give 1.78%

6:02 p.m. ET Monday: Stock futures remain unchanged after a choppy session

Here is where the markets were trading before the evening session on Monday:

  • S&P 500 futures contractsES = F.): +1.50 points (+0.03%) to 4,663.75 points

  • Dow futures contractsYM = F.): -6.00 points (-0.02%), to 35,946.00

  • Nasdaq futures contractsNQ = F.): +6.25 points (+0.04%) to 15,614.25

  • raw (CL = F.): +0.25 dollars (+0.32%) to 78.48 dollars per barrel

  • gold (GC = F.): + $1.20 (+0.07%) to $1,800.00 per ounce

  • Treasury for 10 years (^ degeneration): unchanged to give 1.78%

Alexandra Semenova is a reporter for Yahoo Finance. Follow her on Twitter Tweet embed

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