(Bloomberg) — Technology companies dragged down U.S. stocks, overshadowing a report suggesting prospects for cooler inflation. The dollar fell alongside bond yields.
Most Read from Bloomberg
The Nasdaq 100 underperformed major benchmarks, with megacaps like Tesla Inc. and Microsoft Corp. slumping at least 2.5%. Chipmakers erased gains that were earlier driven by Taiwan Semiconductor Manufacturing Co.’s stronger growth projections. Boeing Co. rallied after a Bloomberg News report said the 737 Max is poised to resume commercial flights in China as soon as this month.
Federal Reserve Governor Lael Brainard said the central bank could raise interest rates as early as March to ensure that generation-high price pressures are brought under control. “The committee has projected several hikes over the course of the year,” she said Thursday in response to a question during her confirmation hearing before the Senate Banking Committee. Prices paid to U.S. producers decelerated in December, representing a respite in the recent trend of sizable increases.
“We are in a position where much that has been positive for equities is maybe moving to neutral or negative, and while there are still few alternatives, it makes the equity market ripe for more fluctuations over the next few months as we see how the data shake out and how the Fed reacts,” said Sarah Hunt, portfolio manager at Alpine Woods Capital Investors.
Read: U.S. Initial Jobless Claims Rose to Highest Since Mid-November
Morgan Stanley clients expect financial stocks to outperform this year, according to a survey at its annual conference this week. The poll shows that 45% of respondents bet the industry will be the best performer in 2022. That’s the highest share of the votes for the sector since 2015, the firm said in a note Thursday.
Mortgage rates in the U.S. rose for a third straight week, reaching the highest point in almost two years. The average for a 30-year loan was 3.45%, up from 3.22% last week and the highest since March 2020, Freddie Mac said in a statement Thursday.
Here are some key events this week:
-
Bank of Korea policy decision and briefing on Friday.
-
Wells Fargo, Citigroup, JPMorgan due to report earnings on Friday.
-
U.S. business inventories, industrial production, University of Michigan consumer sentiment, retail sales on Friday.
-
New York Fed President John Williams speaks Friday.
For more market analysis, read our MLIV blog.
Some of the main moves in markets:
Stocks
-
The S&P 500 fell 0.7% as of 1:13 p.m. New York time
-
The Nasdaq 100 fell 1.5%
-
The Dow Jones Industrial Average was little changed
-
The MSCI World index fell 0.4%
Currencies
-
The Bloomberg Dollar Spot Index fell 0.1%
-
The euro rose 0.2% to $1.1464
-
The British pound rose 0.1% to $1.3716
-
The Japanese yen rose 0.5% to 114.12 per dollar
Bonds
-
The yield on 10-year Treasuries declined two basis points to 1.72%
-
Germany’s 10-year yield declined three basis points to -0.09%
-
Britain’s 10-year yield declined three basis points to 1.11%
Commodities
-
West Texas Intermediate crude fell 0.3% to $82.37 a barrel
-
Gold futures fell 0.4% to $1,820.10 an ounce
Most Read from Bloomberg Businessweek
©2022 Bloomberg L.P.
