Stock market news live: tech stocks lead indices higher following Fed decision: S&P 500 gains 1.6%


Stocks reversed their uptrend on Wednesday afternoon as investors mulled over the Federal Reserve’s final monetary policy decision of 2021, which came amid persistent inflationary pressures.

The S&P 500 and Dow Jones turned positive after spending much of the trading day earlier in the red. Bond yields rose immediately after the Fed’s policy statement was announced at 2 p.m., and the benchmark 10-year Treasury yield rose more than 3 basis points to exceed 1.47%.

On Wednesday, all eyes were on the Federal Reserve’s monetary policy statement. In this, the Fed announced that it was accelerating the withdrawal of its stimulus programs in times of crisis. The Fed has stepped up the pace of cutting its asset purchase program to $ 30 billion per month.

Previously, the Fed’s asset purchase program ran at a rate of $ 120 billion per month in treasury bills and agency mortgage-backed securities from the start of the pandemic until November. . Last month, the Fed began cutting those purchases by $ 15 billion and announced a further reduction of $ 15 billion for December.

The Federal Reserve’s updated summary of economic projections, or “dot plot,” also showed the likelihood of several interest rate hikes next year. Updated projections showed that the median member of the Federal Open Market Committee expected three rate hikes in 2022, followed by up to four hikes in 2023 and up to two in 2024. That charted a pace of rate hikes faster than expected in the Fed’s September Points Chart.

The strengthening economic recovery and skyrocketing inflation have given the central bank leeway for a more hawkish policy. Last week’s consumer price index showed the fastest rise in consumer prices in the United States since 1982 on an annual basis in November. And on Tuesday, the US producer price index jumped the most record with a 9.6% year-over-year increase for last month.

The Federal Reserve’s latest statement suggested officials were taking note of the price hike.

“Supply and demand imbalances linked to the pandemic and the reopening of the economy continued to contribute to high levels of inflation,” the statement said.

A number of strategists noted that trading activity over the past few sessions and weeks already reflected the market price in a more hawkish Fed. Software and other growth names were among the biggest laggards in major indexes during Tuesday’s session, and the Nasdaq fell more than 1% during the trading day.

“When you anticipate higher interest rates, growth stocks or long-term growth stocks are certainly the hardest hit,” Art Hogan, chief national markets strategist, told Yahoo Finance Live on Tuesday. “When you do this net present value calculation with a higher interest rate, that implied multiple or multiple assigned to the growth names comes into play. So a lot of that has been built in. When you think of some of those names and real momentum for the growth of names and risky assets, they’ve seen a lot of carnage. “

“What the market is trying to tell us here is that when you set your asset allocation plan for next year, you want to have a barbell approach with growth on one side – you want to have these. growth names that are actually valued at an earnings multiple, not an income multiple or a cash flow multiple or a sales multiple, ”he added.“ We expect 2022 to be a lot like 2021, where you really want to have a balance of growth and value. “

4:03 p.m. ET: Tech stocks lead indices higher following Fed decision: S&P 500 gains 1.6%, Dow adds 383 points, or 1.1%

Here are the main moves in the markets at 4:03 p.m. ET:

  • S&P 500 (^ GSPC): +75.77 (+1.64%) to 4,709.86

  • Dow (^ DJI): +383.38 (+1.08%) to 35 927.56

  • Nasdaq (^ IXIC): +327.94 (+ 2.15%) to 15,565.58

  • Raw (CL = F): + $ 0.86 (+ 1.22%) to $ 71.59 per barrel

  • Gold (CG = F): + $ 7.10 (+ 0.40%) to $ 1,779.40 per ounce

  • 10-year cash flow (^ TNX): + 2.5 bps for a yield of 1.4630%

2:13 p.m. ET: Stocks are trading higher as investors contemplate Fed move

Here’s a look at how the markets were trading on Wednesday afternoon following the latest monetary policy statement and the Federal Reserve projection documents.

  • S&P 500 (^ GSPC): +21.61 (+ 0.47%) to 4,655.70

  • Dow (^ DJI): +142.76 (+ 0.4%) to 35,686.94

  • Nasdaq (^ IXIC): +58.47 (+ 0.38%) to 15,295.27

  • Raw (CL = F): – $ 0.25 (-0.35%) to $ 70.48 per barrel

  • Gold (CG = F):-$ 10.00 (-0.56%) to $ 1,762.30 per ounce

  • 10-year cash flow (^ TNX): +2.3 bps for a yield of 1.462%

11:51 a.m. ET: Pfizer shares hit record high as company waits for COVID-19 pill clearance

Shares of Pfizer (PFE) hit a new intraday high on Wednesday amid optimism about the company’s COVID-19 pill, called Paxlovid. President Joe Biden said on Tuesday that the White House had ordered enough antiviral pills to treat 10 million Americans, and that he was “encouraged by the promising data” the drugmaker had released on the pill. Pfizer data showed earlier this week that the drug reduced the risk of hospitalization or death by 89% for high-risk adults.

Pfizer stock rose more than 3% to trade above $ 57 a share on Wednesday afternoon, heading for a fifth straight day of gains. The stock is up 56% year-to-date.

11:10 a.m.ET: Amazon Web Services sees connectivity issues, affecting Twitch and other platforms

Amazon’s web hosting platform, Amazon Web Services (AWS), encountered connectivity issues on Wednesday morning, triggering outages on Zoom Video Communications’ platforms to Twitch owned by Amazon and others. online services.

As of 10:42 am ET, over 20,000 outages were reported on DownDetector. Amazon Web Services said on its status page Wednesday that it was still investigating connection issues in northern California and Oregon as of late morning Eastern Time.

9:30 a.m. ET: Stocks open flat

Here’s where the markets were trading at 9:30 a.m. ET:

  • S&P 500 (^ GSPC): +4.04 (+ 0.09%) to 4,638.13

  • Dow (^ DJI): +1.87 (+ 0.01%) to 35,546.05

  • Nasdaq (^ IXIC): -5.75 (-0.04%) to 15,919.00

  • Raw (CL = F): $ -0.54 (-0.76%) to $ 70.19 per barrel

  • Gold (CG = F): – $ 1.60 (-0.09%) to $ 1,770.70 per ounce

  • 10-year cash flow (^ TNX): +3.8 bps for a yield of 1.467%

8:30 a.m. ET: Retail sales up 0.3% in November, estimates missing

Retail sales in the United States rose at a slower-than-expected pace in November after surging in October, with sales at electronics retailers and department stores falling particularly hard during the month.

Retail sales rose 0.3% in November from October, the Commerce Department said on Wednesday. That is lower than the 0.8% monthly increase economists expected from the consensus, according to data compiled by Bloomberg. In October, retail sales rose 1.8%, which was revised up from the previously expected 1.7% increase.

By category, department stores experienced one of the largest drops in sales during the month, dropping 5.4%. More generally, general merchandise store sales fell 1.2%. Sales at electronics and appliance stores fell 4.6%, and sales at health and personal care stores fell 0.6%.

“I see this more as a sign that Americans have started their holiday shopping early, as opposed to bad news for retailers,” Ted Rossman, senior industry analyst at CreditCards.com, wrote in an email Wednesday. morning. year over year, retail sales were still up 18.2%.

“This year-to-year comparison is more meaningful and illustrates solid expansion,” he added.

7:26 a.m. ET Wednesday: stock futures drift

Here’s where the markets were trading ahead of Wednesday’s opening bell:

  • S&P 500 Futures Contracts (ES = F): +0.25 point (+ 0.01%), at 4,637.25

  • Dow Futures (YM = F): +12 points (+ 0.03%), at 35,564.00

  • Nasdaq Futures (NQ = F): -11.5 points (-0.07%) to 15,913.25

  • Raw (CL = F): $ -0.87 (-1.23%) to $ 69.86 per barrel

  • Gold (CG = F): -2.00 $ (-0.11%) to $ 1,770.30 per ounce

  • 10-year cash flow (^ TNX): +0.9 bps for an efficiency of 1.448%

6:24 p.m. ET Tuesday: Stock futures rise ahead of Fed move

Here are the main moves in the markets as the overnight session started on Tuesday:

  • S&P 500 Futures Contracts (ES = F): +2.25 points (+ 0.05%), at 4,639.25

  • Dow Futures (YM = F): +25 points (+ 0.07%), at 35,577.00

  • Nasdaq Futures (NQ = F): +12.25 points (+ 0.08%) to 15,937.00

NEW YORK, NEW YORK – DECEMBER 13: Traders work on the floor of the New York Stock Exchange (NYSE) on December 13, 2021 in New York City. While investors are still concerned about rising prices due to inflation, the Dow Jones Industrial Average lost 175 points in Monday morning trading. (Photo by Spencer Platt / Getty Images)

Emily McCormick is a reporter for Yahoo Finance. Follow her on twitter



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