- As the Federal Reserve prepares to wrap up its final meeting of the year, another report showing high inflation sank some of the stock market's most expensive sectors.
- Technology stocks, which were admired by investors during the pandemic for their strong balance sheets, dragged down equities on Tuesday. Concerns that a rise in both producer and consumer prices will put pressure on the Fed to act more aggressively soured sentiment. While officials have not indicated a rush to tighten policy, an abrupt shift is viewed as the most significant downside risk for equities in 2022, according to an informal major newswire survey of fund managers.
- Treasury two-year yields surpassed 0.65%, while the US dollar extended its gains for a second day. bitcoin fluctuated. Oil and gold have retreated.
- A Goldman Sachs Group basket of the 50 most-shorted stocks has fallen back into a bear market for the first time since June, netting profits for traders who sell borrowed shares in the hope of repurchasing them at a lower price. The renewed selloff in the market's more speculative areas adds to evidence of a waning appetite for risk as a new variant of the coronavirus spreads and the Fed focuses on fighting inflation.
