- Stocks in the United States fell in choppy trading as investors weighed earnings growth forecasts against the possibility of monetary policy tightening. The rout pushed the Nasdaq Composite Index above the criterion for a correction.
- For the first time since October, the S&P 500 fell for a second day, closing below a key technical support level. The Nasdaq Composite Index extended its losses, falling more than 10% from a November high.
- Treasury yields fell across the curve, despite rising expectations that the 10-year Treasury note will exceed 2%. For the first time in four days, the dollar index fell.
- Global equities have had a volatile start to the year, hampered by a more hawkish Federal Reserve stance, Omicron-related economic disruptions, and risks to company profits due to rising costs. Positive earnings from companies such as Morgan Stanley, UnitedHealth Group, and Procter & Gamble aided sentiment.
- Earnings optimism and dip-buyers competed with speculation that the Fed may deliver more than a quarter-point interest-rate hike in March to combat inflation.
- Morgan Stanley rose after raising its profitability targets and reporting a surprise increase in equities-trading revenue, while Bank of America advanced as the bank saw loan growth return, with consumers and businesses beginning to take on debt again. Results from companies other than banks also boosted sentiment, with UnitedHealth Group rising after exceeding analysts' highest estimate, and Procter & Gamble rising after raising its sales forecast.
- Oil hit a new seven-year high after the International Energy Agency said the market is tighter than previously thought, with demand remaining resilient to Omicron.
