Connect with us


Stock market news live updates: Stocks swing as investors weigh economic reports, Fed minutes

News Agencies



U.S. stocks wobbled in back-and-forth trading Wednesday as investors weighed a batch of economic data and minutes from the Federal Reserve’s December policy meeting.

The S&P 500 (^GSPC) was up a modest 0.1% in the afternoon, falling from a session high of more than 1% after minutes came in more hawkish than anticipated. The Dow Jones Industrial Average (^DJI) fell 0.2%, and the technology-heavy Nasdaq Composite (^IXIC) was roughly flat.

A readout of discussions from the U.S. central bank’s December gathering indicated Fed officials were reticent an “unwarranted” easing of financial conditions could backtrack their efforts to restore price stability, while also acknowledging the need for more policy flexibility.


“Participants noted that, because monetary policy worked importantly through financial markets, an unwarranted easing in financial conditions, especially if driven by a misperception by the public of the committee’s reaction function, would complicate the committee’s effort to restore price stability,” minutes of the Fed’s Dec. 13-14 meeting stated.

Policymakers set to convene again January 31-February 1 and expected to deliver the first rate increase of 2023 and eighth of the current hiking cycle at the conclusion of discussions. Last month, the Fed raised interest rates by 50 basis points, bringing total increases to its benchmark policy rate to 4.25% in 2022.

“The Fed minutes are a good reminder for investors to expect rates to remain high throughout all of 2023,” Mike Loewengart, head of model portfolio construction at Morgan Stanley’s Global Investment Office said in emailed comments. “Bottom line is that even though we flipped the calendar, the market headwinds from last year remain.”


Earlier in the day, the latest Job Openings and Labor Turnover Survey, or JOLTS, showed a 10.5 million job vacancies in November — more than forecast — pointing to continued labor market momentum despite monetary tightening by the Federal Reserve. Meanwhile, the ISM Manufacturing PMI fell for a second consecutive month to 48.4 in December from 49 in November, the biggest decline since May 2020.

The moves Wednesday follow a bleak start to 2023 trading as many of last year’s pressures follow investors into the new year. On Tuesday, all three major averages closed lower.


Meanwhile in specific market moves, Microsoft (MSFT) shares fell 4.9% to the lowest level since November after UBS downgraded the stock to Neutral from Buy and cut its price target by $50 to $250 over concerns about the company’s cloud-computing business, a key driver of revenue.

All eyes were on Tesla (TSLA) again Wednesday after shares plunged 12% in the first trading day of 2023 Tuesday. It marked Tesla’s biggest drop in more than two years and erased all the recovery gains made in the final three sessions of 2022 last week. Shares rose 4.5% on Wednesday.

The electric carmaker earlier this week reported vehicle production and delivery figures for the fourth quarter that disappointed Wall Street, piling on another woe for investors already weighing concerns over production at Tesla’s China plant and CEO Elon Musk’s management of Twitter.


Shares of Alibaba Group (BABA) soared 11.7% after billionaire co-founder Jack Ma won approval from Chinese regulators to raise 10.5 billion yuan — or $1.5 billion — for subsidiary Ant Group’s consumer finance business. Other U.S.-listed Chinese stocks also gained.

Salesforce (CRM) on Wednesday announced restructuring plans that included cutting about 10% of its workforce and closing some of its offices, joining a growing list of technology companies laying off workers to cut costs after overhiring during the post-pandemic boom in 2021. Shares advanced 3.3%.

Elsewhere in other markets, U.S. Treasury yields fell, with the benchmark 10-year note dropping 7 basis points to yield around 3.70%, while the 2-year yield was down about 4 basis points to 4.37%.


The U.S. dollar index also fell. And oil prices continued to sink, with West Texas Intermediate (WTI) crude futures — the U.S. benchmark — dropping 4% below $74 per barrel.

NEW YORK - JANUARY 03: Exterior view of the New York Stock Exchange on Wall street during the 2023 First Trading Day at the NYSE in New York City, January 03, 2023. (Photo by Kena Betancur/VIEW press)

NEW YORK – JANUARY 03: Exterior view of the New York Stock Exchange on Wall street during the 2023 First Trading Day at the NYSE in New York City, January 03, 2023. (Photo by Kena Betancur/VIEW press)

Investors are in for a busy week of economic data this shortened first trading week of the year. Minutes from the FOMC’s December meeting are due out at 2 p.m. ET. The readout is likely to show the thinking behind the central bank’s “slower but higher” regime after Fed Chair Powell last month signaled that he and colleagues will switch to smaller rate hikes but likely a higher terminal rate.

Financial markets capped their worst year since 2008 on Friday, as aggressive central bank actions to quell inflation and war in Eastern Europe battered stocks and bonds. Even as investors turn the page on 2022, much of Wall Street expects more pain remains ahead.


“What we’ve picked up from our modeling is there’s a bit of a regime change taking place under the surface, and what we mean by that is 2022 was all about the Fed as they tightened financial conditions to fight inflation” Huw Roberts, head of analytics at Quant Insight, told Yahoo Finance Live on Tuesday.

“But what we’re picking up on now, is more sensitivity to the real economy – greater sensitivity to growth, to inflation expectations, to industrial metals, and to the credit cycle – and what that says to us is markets will be spending the early part of 2023 really getting nervous about a hard landing.”


Alexandra Semenova is a reporter for Yahoo Finance. Follow her on Twitter @alexandraandnyc

Click here for the latest trending stock tickers of the Yahoo Finance platform

Click here for the latest stock market news and in-depth analysis, including events that move stocks


Read the latest financial and business news from Yahoo Finance

Download the Yahoo Finance app for Apple or Android

Follow Yahoo Finance on Twitter, Facebook, Instagram, Flipboard, LinkedIn, and YouTube

Continue Reading


Breaking News

Editor Pick’s

Latest Entertainment

Entertainment32 mins ago

Austin Butler says he’s finally ‘getting rid of’ his Elvis accent

Austin Butler says his Elvis Presley accent is on the way out. (Photo: FREDERIC J. BROWN/AFP via Getty Images) Austin...

Entertainment2 hours ago

‘Flashdance’ singer Irene Cara’s cause of death revealed

Irene Cara died on Nov. 25. (Photo: Jordin Althaus/WireImage) Irene Cara, best known for her work acting in ’80s movie...

Entertainment2 hours ago

Vanessa Hudgens Is Engaged to Professional Baseball Player  Cole Tucker

Cole Tucker and Vanessa Hudgens attend the 2021 AFI Fest Matt Winkelmeyer/Getty Vanessa Hudgens is officially a bride-to-be! The High...

Entertainment3 hours ago

Ex-pop star Gary Glitter freed from UK prison

LONDON (AP) — Former pop star Gary Glitter was released from prison in England on Friday after serving half of...

Entertainment4 hours ago

Joey Lawrence says the late Anne Heche was ‘an amazing light’ in his new movie ‘Frankie Meets Jack’

Joey Lawrence, the late Anne Heche and Lawrence’s wife, Samantha Cope, co-star in the new movie Frankie Meets Jack. (Photo:...

Entertainment11 hours ago

Nick Carter Countersues Women Who Accused Him of Sexual Assault: ‘Opportunists’

NEW YORK, NY – JUNE 26: Singer Nick Carter leaves the Ray Tamarra/GC Images Nick Carter is fighting back against...

Entertainment14 hours ago

Euphoria’s Chloe Cherry Facing Theft Charge for Allegedly Stealing $28 Blouse

Chloe Cherry Kirstin Sinclair/Getty Chloe Cherry has been charged with misdemeanor retail theft over an alleged incident that took place...

Entertainment15 hours ago

Dwayne Johnson Says His Mom Is ‘OK’ After Late-Night Car Accident, Will ‘Continue to Get Evaluated’

Dwayne Johnson and his mom, Ata Johnson arrive at the AFI FEST 2016 presented by Audi premiere of Disney’s “Moana”...


Latest Sports

Sports46 mins ago

Cameron Young one back as Mickelson, Smith, DeChambeau miss Saudi cut

Cameron Young will enter the weekend one shot off the lead held by Abraham Ancer at the Saudi International.

Sports1 hour ago

Dan Orlovsky bizarrely claims Joe Montana not top-5 NFL QB all time

Dan Orlovsky unleashed a take regarding 49ers great Joe Montana that was so hot, it might have inadvertently scalded him...

Sports2 hours ago

Ford to rejoin Formula 1 in 2026 and team up with Red Bull Racing

Red Bull is currently running Honda engines under its own branding. It won the 2022 constructors' title and snapped an...

Sports2 hours ago

Brooks hits Mitchell in groin, both get ejected

Both Cavaliers star Donovan Mitchell and Memphis Grizzlies forward Dillon Brooks were ejected on Thursday night after a brawl broke...

Sports3 hours ago

Will Tom Brady re-sign with the Buccaneers for cap purposes?

Tom Brady is gone from Tampa Bay. He leaves behind a championship legacy — along with a $35.1 million cap...

Sports3 hours ago

Knicks’ RJ Barrett addresses frustration with benching against Lakers

Following Thursday's win, Knicks guard RJ Barrett addressed his frustrations with being benched against the Lakers on Tuesday.

Sports3 hours ago

Mavericks star Luka Doncic injures right foot after scary fall in win over Pelicans

Luka Doncic was ruled out with a right heel contusion on Thursday night, just days after he returned from a...

Sports4 hours ago

TNT’s Charles Barkley, Shaquille O’Neal tell Memphis Grizzlies to ‘quit talking, start playing’

On "Inside the NBA", Hall of Famers Shaquille O'Neal and Charles Barkley had something to say about the Grizzlies talking...

Technology Hot News

Technology2 weeks ago

Led by "Amazon" and "Microsoft" .. the technology giants are planning to lay off 64,000 employees

After 10 years of driving the stock market bull run, big tech companies are racing to downsize staff to adapt...

Technology2 weeks ago

Apple introduces MacBooks with new M2 processors

Yesterday, Tuesday, Apple unveiled MacBooks powered by the new, faster “M2 Pro” and “M2 Max” processor chips, in a surprise...

Technology2 weeks ago

All you need to know about the upcoming Galaxy S23 phones from Samsung

Samsung has officially announced that the (Galaxy Unpacked 2023) event will be held this year on Wednesday, February 1, which...

Technology2 weeks ago

FTX Exchange Announces Hacking and Stolen $415 Million in Cryptocurrency

Bankrupt American cryptocurrency firm FTX announced today, Wednesday, that $415 million in cryptocurrency has been hacked and stolen from the...

Technology2 weeks ago

Because of a "fraudulent tweet"… Elon Musk's trial begins

Elon Musk's trial began Tuesday in San Francisco with the selection of jury members who will have to decide whether...

Technology2 weeks ago

An electric spoon replaces salt and spices, but with conditions

Experts have developed an electric spoon that is able to replace spices and flavors and affect the taste buds in...

Technology3 weeks ago

The biggest dangers of using tracking devices.. so you can escape?

If you spot an unknown Bluetooth tagging device, there are ways to disable the device so it can't track your...

Technology3 weeks ago

New Twitter.. For You tab to web version

The Twitter platform announced that it will bring the new tab (For You), which launched last Tuesday for iPhones and...