US stocks get new weak start, dragged lower by technology – WSOC TV

Stocks got a fresh start on Tuesday as traders try to calibrate how the markets and the economy will handle the higher interest rates that are likely expected from the Federal Reserve this year. The S&P 500 slipped 0.2%. The index has recorded five consecutive losses and has not seen a winning day since the very first trading day of the year. Tech stocks were once again the biggest weight in the market and the Nasdaq lost 0.2%. The yield on the 10-year Treasury bill remained at 1.77%. Bond yields have risen sharply since the start of the year.

THIS IS A CURRENT UPDATE. AP’s previous story follows below.

TOKYO (AP) – European benchmarks rose on Tuesday, but Asian stocks mostly fell after falling on Wall Street.

The French CAC 40 gained 0.6% at the start of the session to 7,160.56, while the German DAX gained 0.7% to 15,882.28. The UK FTSE 100 rose 0.4% to 7,474.60. US stocks are expected to drift higher as Dow futures rise less than 0.1% to 35,965.00. Futures on the S&P 500 rose nearly 0.1% to 4,664.50.

Investors are monitoring the growing number of coronavirus cases, particularly in China, where a third city has locked up its residents due to a COVID-19 outbreak, bringing the number confined to their homes to around 20 million people.

“In China, the bullish momentum quickly faded and reversed as COVID-19 restrictions were tightened again in some Chinese cities,” said Jeffrey Halley, senior market analyst at Oanda.

Such disruptions can have regional implications for trade and other activities. Large companies, including automakers such as Toyota, were counting on a resumption in the supply of semiconductor chips and other products from China and the rest of Asia, as vaccinations and other efforts to improve. prevention of coronaviruses were progressing. The recent increase in infections with the omicron variant of the coronavirus has shaken those hopes.

Japan is also seeing a dramatic increase in reported COVID cases, which experts say are mostly omicron. Japan has decided to maintain strict border controls until next month, which bar entry to travelers, except residents and returning citizens. Prime Minister Fumio Kishida said the large-scale facilities run by the Japanese military to carry out vaccinations, which closed last year, would reopen to speed up booster injections. So far, less than 1% of the population has received boosters.

Japan’s benchmark Nikkei 225 fell 0.9% to close at 28,222.48, returning from a public holiday on Monday. South Korean Kospi took less than a point at 2,927.38. The Australian S & P / ASX 200 fell 0.8% to 7,390.10. Hong Kong’s Hang Seng Index lost less than 0.1% to 23,739.06, while the Shanghai Composite Index lost 0.7% to 3,567.44.

High inflation is wreaking havoc on American families, Federal Reserve Chairman Jerome Powell acknowledged in a speech to be delivered Tuesday at a congressional hearing on Powell’s appointment for a second four-year term.

Higher interest rates make stocks of expensive tech companies and other expensive growth companies less attractive to investors, and the sector has slipped as bond yields rise. The tech sector was the biggest weight in the market until January and is coming out of its worst week since October 2020.

Rising interest rates could curb the surge in prices, but it would also mark the end of the easy monetary conditions that have kept financial markets booming since the first shocks of the pandemic in early 2020. The market is now placing them. the Fed’s chances of increasing in the near term. rate of at least a quarter point in March to around 78%. A month ago it was around 36%.

Looking ahead, the US Department of Labor will release the Consumer Price Index for December on Wednesday. The agency will give investors details of the impact of inflation on businesses with its producer price index for December on Thursday. On Friday, Citigroup, JPMorgan Chase and Wells Fargo will release their latest quarterly financial results.

In energy trading, US benchmark crude rose $ 1.30 to $ 79.53 per barrel in electronic trading on the New York Mercantile Exchange. It lost 67 cents to $ 78.23 on Monday.

Brent crude, the international standard, added $ 1.18 to $ 82.05 a barrel.

In currency trading, the US dollar rose from 115.20 yen to 115.27 Japanese yen. The euro cost $ 1.1348, compared to $ 1.1326.

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