Get 40% Off
🤯 This Tech Portfolio is up 29% YTD! Join Now to Get April’s Top PicksGet The Picks – Just 99 USD

Stock Market News for Jan 14, 2022

Published 01/13/2022, 09:30 PM
Updated 07/09/2023, 06:31 AM

U.S. stocks closed sharply lower, led by a huge selloff in tech stocks as the Nasdaq snapped its three-day winning streak after rising interest rate worries once again dented investors’ spirits. All the three major indexes ended in negative territory.

How Did The Benchmarks Perform?

The Dow Jones Industrial Average (DJI) shed 0.5% or 176.70 points to close at 36,113.62.

The S&P 500 declined 1.4% or 67.32 points to end at 4,659.03 points. Tech and consumer discretionary stocks were the worst performers.

The Technology Select Sector SPDR (XLK) declined 2.6%, while the Consumer Discretionary Select Sector SPDR (XLY) lost 2%. Eight of the 11 sectors of the benchmark index ended in negative territory.

The tech-heavy Nasdaq was the worst performer falling 2.5% or 381.58 points to finish at 14,806.81 points.

Big tech stocks were the biggest losers, with shares of Amazon.com (NASDAQ:AMZN), Inc. AMZN and Microsoft Corporation (NASDAQ:MSFT) MSFT declining 2.4% and 4.2%, respectively. Amazon has a Zacks Rank #3 (Hold). You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.

The fear-gauge CBOE Volatility Index (VIX) was up 15.27% to 20.31. A total of 10.43 billion shares were traded on Thursday, higher than the last 20-session average of 10.39 billion. Decliners outnumbered advancers on the NYSE by a 1.27-to-1 ratio. On Nasdaq, a 2.24 to-1 ratio favored declining issues.

Tech Stocks Take a Beating Again

Tech stocks feel on Thursday, snapping their three-day winning streak. This has been the trend since the beginning of the year as rising interest rates have been pushing the 10-year Treasury yield higher.

Growth shares, especially tech stocks, are more sensitive to interest rates have been taking a beating since the beginning of 2022 as investors have been worrying that the Fed will be more aggressive toward hiking rates in the coming months than expected in order to tackle the surging inflation. These worries once again halted the tech rally, leading to massive selloff. Shares of Tesla (NASDAQ:TSLA), Inc. TSLA declined 6.8%, while Meta Platforms, Inc. FB fell 2%.

Moreover, on Thursday several Fed officials spoke publicly about rising inflation and the need for rate hikes to tackle the situation. There were also reports that the Fed could start raising rates as soon as from March, which further took a toll on the high-flying tech stocks.

Economic Data

Markets hardly had an impact on the economic reports released on Thursday. In economic reports released on Thursday, the producer-price index for December showed that inflation at the wholesale level 9.7% year over year after rising 9.8% in November. On a monthly basis it rose 0.2%, which is the lowest in more than a year.

The Labor Department said on Thursday that initial jobless claims rose to 230,000, increasing 23,000 for the week ending Jan 8. The four-week moving average also rose to 210,750, an increase of 6,250 from the previous week’s unrevised average of 204,500.

However, continuing claims fell by 194,000 to 1,559,000. The previous week's numbers were revised down by 1,000 from 1,754,000 to 1,753,000. The 4-week moving average came in at 1,721,500, a decline of 77,000 from the previous week's revised average.


Infrastructure Stock Boom to Sweep America

A massive push to rebuild the crumbling U.S. infrastructure will soon be underway. It’s bipartisan, urgent, and inevitable. Trillions will be spent. Fortunes will be made.

The only question is “Will you get into the right stocks early when their growth potential is greatest?”

Zacks has released a Special Report to help you do just that, and today it’s free. Discover 5 special companies that look to gain the most from construction and repair to roads, bridges, and buildings, plus cargo hauling and energy transformation on an almost unimaginable scale.

Download FREE: How to Profit from Trillions on Spending for Infrastructure >>

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report

Amazon.com, Inc. (AMZN): Free Stock Analysis Report

Microsoft Corporation (MSFT): Free Stock Analysis Report

Tesla, Inc. (TSLA): Free Stock Analysis Report

Meta Platforms, Inc. (FB): Free Stock Analysis Report

To read this article on Zacks.com click here.

Zacks Investment Research

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.