- Stocks recovered as dip buyers emerged to end a five-day losing streak, the longest since September.
- After falling about 2%, the S&P 500 nearly recovered its losses, buoyed by signs that the Omicron coronavirus variant may be peaking in New York. The Nasdaq 100 turned green after the index of tech titans such as Apple and Microsoft fell as much as 8.5% from its November high.
- According to Goldman Sachs, the Fed will likely raise rates four times this year and will begin its balance-sheet runoff process in July, if not sooner.
- A key measure of US inflation, set to be released on Wednesday, is expected to have risen further in December, putting additional pressure on the Fed to tighten policy.
- There have been four distinct periods of rate-hike cycles by the Fed over the last three decades. According to Strategas Securities, technology, which has been under pressure due to expectations of earlier and faster rate increases, is among the best-performing sectors during those cycles.
- In other news, Bitcoin was on track for its worst start to a year since the digital currency's inception. Treasury 10-year yields were hovering around 1.8%.
