5 things to know before the stock exchange opens on Wednesday 12 January

Here are the key news, trends and analyzes that investors need to start their trading day:

1. Wall Street looks taller after a two-session tech rebound

Traders on the floor of the NYSE, January 10, 2022.

Source: NYSE

US stock futures picked up on Wednesday after another hot but expected inflation report.

  • Nasdaq rose Tuesday for the second session as technology stocks continued to rise. The index rose 1[ads1].4% as bond yields stabilized, which took some pressure off growth-oriented names, which seemed to have found a foothold after a tough start to the new year.
  • The S&P 500 rose almost 1%, breaking a losing streak of five sessions.
  • The Dow Jones Industrial Average rose 0.5%, ending a four-session low.
  • On Tuesday, the S&P 500 and Dow finished almost 1.8% and 1.5% away, respectively, from record bars last week. Nasdaq finished 5.6% off the record in November.

2. Consumer prices have risen by the fastest cut since 1982, but were in line with estimates

The government’s consumer price index for December on Wednesday showed an increase of 7% year over year, in line with estimates and the warmest increase since 1982. The core CPI, which excludes food and energy, rose 5.5% year over year, slightly higher than expected . Inflation has eroded otherwise strong wage growth for workers. The 10-year government interest rate on Wednesday fell to close to 1.72% according to the data and after a peak this year to over 1.8% earlier this week.

3. Fed chief Powell says tighter policies are needed to control inflation

The US Federal Reserve Chairman Jerome Powell speaks during his nomination hearing of the Senate Banking, Housing and City Committee on Capitol Hill, Washington, USA, January 11, 2022.

Graeme Jennings | Reuters

Federal Reserve Chairman Jerome Powell, with a seemingly clear path to another term as head of the central bank, declared on Tuesday that the US economy is both healthy enough and in need of tighter monetary policy to control inflation. This will probably mean interest rate increases this year, a reduction in monthly asset purchases and a reduction in the Fed’s balance sheet. Powell made the comments during his confirmation hearing, where key senators indicated they would support him for another term.

4. Omicron may be heading for a rapid fall in the United Kingdom

A patient with coronavirus disease (COVID-19) is intubated in his isolation room in the intensive care unit (ICU) at the Western Reserve Hospital in Cuyahoga Falls, Ohio, USA, January 4, 2022.

Shannon Stapleton | Reuters

Researchers are seeing signs that the rapidly spreading Covid-omicron variant may have reached its peak in the UK and may be ready to do the same in the US. after it was first discovered in South Africa. The University of Washington’s very influential model estimates 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. The last seven-day average of new daily infections was 747,267, according to a CNBC analysis of data from Johns Hopkins University.

5. Biden sends several Covid tests to schools to keep them open

Students leave Darwin Elementary in Chicago’s Logan Square neighborhood on Monday, January 3, 2022, the first day back to school from the Chicago Public Schools winter break.

Brian Cassella | Tribune News Service | Getty pictures

The White House is increasing federal support for Covid testing for schools in an effort to keep them open as the omicron variant is being torn down across the United States. The Biden administration announced on Wednesday that it is creating a dedicated stream of 5 million rapid tests and 5 million laboratory-based PCR tests. available to schools starting this month. Efforts are aimed at alleviating supply shortages and promoting safety in schools. It is on top of more than $ 10 billion devoted to school-based tests authorized by the Covid Relief Act.

– The Associated Press contributed to this report. Follow all the marketing action like a pro CNBC Pro. Get the latest news about the pandemic CNBC’s coronavirus coverage.

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