(Bloomberg) — Stocks fluctuated as technology companies rebounded, offsetting a slide in financial shares amid disappointing results from two of Wall Street’s biggest banks.
The S&P 500 was little changed, while still heading for its second straight week of declines amid intense volatility driven by expectations of higher interest rates. JPMorgan Chase & Co. and Citigroup Inc. tumbled after posting a steeper-than-expected drop in trading revenues, while Wells Fargo & Co. climbed as it expects a key measure of lending to pick up. The tech-heavy Nasdaq 100 outperformed major benchmarks after falling to its lowest since October.
Retail sales sank in December by the most in 10 months, suggesting the fastest inflation in decades is taking a greater toll on consumers. Growth in U.S. factory output unexpectedly declined amid persistent struggles with material and labor shortages.
The U.S. economy will take an early hit this year from the omicron variant of coronavirus — but the damage shouldn’t last beyond the first quarter, according to Bloomberg’s latest monthly survey of forecasters. The Federal Reserve is increasingly expected to raise rates from zero at its meeting in March as it seeks to rein in price pressures.
“The Fed shifting into inflation-fighting, particularly from the currently depressed level of real rates, is a paradigm shift that will continue to influence sector, industry, and factor returns over the coming months,” wrote Dennis DeBusschere, founder of 22V Research.
For more market analysis, read our MLIV blog.
Some of the main moves in markets:
Stocks
- The S&P 500 was little changed as of 9:57 a.m. New York time
- The Nasdaq 100 rose 0.6%
- The Dow Jones Industrial Average fell 0.5%
- The Stoxx Europe 600 fell 0.6%
- The MSCI World index fell 0.3%
Currencies
- The Bloomberg Dollar Spot Index was little changed
- The euro fell 0.1% to $1.1442
- The British pound fell 0.1% to $1.3691
- The Japanese yen rose 0.4% to 113.70 per dollar
Bonds
- The yield on 10-year Treasuries advanced three basis points to 1.74%
- Germany’s 10-year yield advanced three basis points to -0.06%
- Britain’s 10-year yield advanced two basis points to 1.13%
Commodities
- West Texas Intermediate crude rose 1% to $82.96 a barrel
- Gold futures rose 0.1% to $1,823.90 an ounce
More stories like this are available on bloomberg.com
©2022 Bloomberg L.P.
