Here are the most important news, trends and analysis that investors need to start their trading day:
1. Wall Street rallies after two days of technology recovery
Traders in the NYSE Hall, January 10, 2022
Source: New York Stock Exchange.
US stock futures changed slightly on Wednesday ahead of a key inflation report. The Nasdaq rose on Tuesday for its second session as tech stocks continued to rebound. The index rose 1.4% as bond yields stabilized, easing some pressure from growth-oriented companies that appear to have found their footing after a tough start to the new year. The S&P 500 rallied nearly 1%, breaking a five-session losing streak. The Dow Jones Industrial Average added 0.5%, breaking a four-day losing streak. The S&P 500 and Dow closed nearly 1.8% and 1.5% on Tuesday, compared to their record closes last week. The Nasdaq closed 5.6% below its record close in November.
2. Consumer prices in December are likely to remain high
The core CPI, which excludes food and energy, rose 5.4% year-on-year in December, up from 4.9% in the previous month. The yield on 10-year Treasuries fell to about 1.74% on Wednesday ahead of the data release after jumping this year to more than 1.8% earlier this week.
3. Fed chief Powell says tougher policies are needed to contain inflation
US Federal Reserve Board Chairman Jerome Powell speaks during a reappointment hearing before the Senate Banking, Housing and Urban Affairs Committee on Capitol Hill in Washington, DC, January 11, 2022.
Graham Jennings | Reuters
Federal Reserve Chairman Jerome Powell, who seemingly has a clear path to a second term at the head of the central bank, said on Tuesday that the US economy is healthy enough and needs tighter monetary policy to control inflation. This will likely mean higher interest rates this year, lower monthly asset purchases and a shrinking Fed balance sheet. Powell made the comments during his confirmation hearing, during which key senators said they would support him for a second term.
A coronavirus disease (COVID-19) patient lies intubated in his isolation ward in the intensive care unit (ICU) at Western Reserve Hospital in Cuyahoga Falls, Ohio, USA on January 4, 2022.
Shannon Stapleton | Reuters
Scientists see signals The fast-spreading variant of Covid omicron may have peaked in the UK and may be poised to do the same in the US. Omicron has proven to be so contagious that there may not be enough people to infect it, just a month and a half after it was first discovered in South Africa. The University of Washington’s own highly influential model predicts that the number of daily reported cases in the United States will reach 1.2 million by January 19 and then begin to fall sharply. According to CNBC’s analysis of Johns Hopkins University data, the latest seven-day average of new infections was 747,267.
5. Biden is sending more Covid tests to schools to keep them open.
Students leave Darwin Elementary School in Chicago’s Logan Square on Monday, January 3, 2022, the first day after winter break at Chicago public schools.
Brian Cassella | Tribune News Service | Getty Images
The White house increases federal support for Covid testing for schools in an effort to keep them open as the omicron option spreads across the US. starting this month. Efforts are focused on alleviating material shortages and ensuring school safety. This is in addition to the more than $ 10 billion allocated for school tests authorized by the Covid Relief Act.
– The Associated Press contributed to this report. Follow all market activity like a professional on CNBC Pro… Get the latest pandemic news with CNBC Coronavirus Coverage…