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Stock market news for January 10, 2022

Latest stock market news today January 10, 2022. A lower close for the US stock market, Nasdaq closed flat and outperformed. The closing for the US stock market today are:

Stock market news today

“Stocks sank on Monday, with technology stocks under renewed pressure as investors anticipated higher interest rates this year and looked ahead to several economic data and earnings reports later this week.

The S&P 500 dropped more than 2% at session lows to add to losses after the blue-chip index closed out its first week of trading for the new year in the red. The Nasdaq Composite fell following its worst week since February 2021. The Dow also fell. Other risk assets also came under pressure, and Bitcoin prices fell below $40,000 for the first time in about four months.

Treasury yields climbed, and the benchmark 10-year yield topped 1.8% to reach its highest level since January 2020.

“The surge in rates since early December has crushed the valuation of stocks with high growth and low margins, but a well-ordered progression of Russell 3000 stocks implies further repricing,” Goldman Sachs chief equity strategist David Kostin wrote in a note.

“We have previously shown the speed of rate moves matters for equity returns,” Kostin added. “Equities typically struggle when the 5-day. or 1-month change in nominal or real rates is greater than 2 standard deviations. The magnitude of the recent yield qualifies as a 2+ standard deviation event in both cases.”

The move higher in yields and volatility across U.S. equities came after the release of the Federal Reserve’s December meeting minutes mid-last week. These suggested some central bank officials were eyeing a quicker start to interest rate hikes and balance sheet runoff process than many market participants had expected. Goldman Sachs economists now predict the Fed will raise interest rates four times this year — or one time more than the firm previously expected — and that the central bank’s balance sheet reduction will begin in July or earlier.”

Stock market data: Yahoo Finance



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