Stock market news live updates: Stocks plunge at open amid continued rate pressure; Dow sheds 500 points

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U.S. stocks fell sharply Tuesday greeting arsenic investors geared up for a holiday-shortened week rife with quarterly net reports from companies crossed each 3 large indexes.

The Dow Jones Industrial Average plunged much than 500 points and the tech-heavy Nasdaq shed 1.7% arsenic Wall Street continued to measurement the likelihood of sooner-than-expected involvement complaint hikes. The S&P 500 besides edged lower, declining much than 1%. Meanwhile, the output connected the benchmark 10-year Treasury roseate to its highest level successful 2 years — up to 1.84%

Wall Street was closed connected Monday successful observance of Martin Luther King Jr. Day but resumed trading Tuesday amid a flurry of firm results unveiled up of the session: Goldman Sachs (GS), PNC Bank (PNC) and Bank of New York Mellon (BK) released net reports for the past 3 months of 2021 earlier marketplace open.

Goldman Sachs (GS) reported fourth-quarter net that fell beneath expert expectations — reflecting a diminution successful nett for the past 3 months of the twelvemonth owed to weakness successful its trading arm, adding to a lackluster lineup of caller slope results.

With net play successful precocious gear, investors volition acceptable their absorption connected institution profits and different firm metrics, shifting distant — astatine slightest temporarily — from worries astir the Federal Reserve’s tightening of monetary argumentation and economical uncertainty that person rattled stocks successful caller weeks.

“I deliberation a batch of rationality tends to travel backmost astir net season,” OANDA marketplace expert Craig Erlam told Yahoo Finance Live. “That’s erstwhile radical volition commencement to get a amended grasp, oregon astatine slightest commencement to possibly look astatine markets done a much rational lens, and we could commencement to spot a spot of normality instrumentality for the markets.”

A trader works connected the level of the New York Stock Exchange astatine the closing doorbell January 14, 2022, successful New York, New York. (Photo by TIMOTHY A. CLARY / AFP) (Photo by TIMOTHY A. CLARY/AFP via Getty Images)

Worries implicit sooner-than-expected involvement complaint increases person weighed connected equity markets successful 2022 truthful far. The S&P 500 is down 2.79% year-to-date, portion the Dow has mislaid 1.84%. The Nasdaq has shed a whopping 5.93% since the commencement of this year, with much than one-third of companies successful the scale astatine slightest 50% from their 52-week highs, according to Bloomberg data.

Still, the outlook for 2022 remains affirmative among strategists who expect that though the twelvemonth is improbable to lucifer the blockbuster returns of 2021, stocks are successful bully signifier for coagulated returns ahead.

“From an economical position 2022 volition look similar a moderated mentation of past year, but investors should beryllium cognizant that the prevailing tailwinds are opening to calm," Charlie Ripley, elder concern strategist for Allianz Investment Management, said successful a note. “Lingering effects from the pandemic are apt to bleed into 2022, but the outright menace from COVID-19 to the system volition proceed to fade.”

“Risk assets volition apt person affirmative returns successful the post-COVID economy, but headwinds are picking up and show volition beryllium choppier than successful past years,” helium added.

On the economical front, investors volition besides tune successful to caller information retired of Washington owed retired Tuesday, including caller reads connected the New York Federal Reserve’s Empire Manufacturing Index and the National Homebuilders Association’s Housing Market Index.

The Department of Treasury is besides acceptable to study its latest people connected Net Long-Term TIC Flows, which tracks the travel of Treasury and bureau securities, firm bonds and equities, into and retired of the United States.

9:45 a.m. ET: Activision Blizzard banal surges connected Microsoft woody announcement

Shares of amusement institution Activision Blizzard (ATVI) jumped aft Microsoft (MSFT) said it volition get the company successful a woody valued astatine $68.7 billion, marking the bundle giant's largest takeover yet. Microsoft is expected to bargain the video crippled steadfast for $95 per share.

ATVI shares were up much than 30% successful greeting trading to astir $85 a piece. Microsoft ticked little astatine open, down 1.27% to $306.27 per share.

Upon closure of the deal, Microsoft is poised to go the world's third-largest gaming institution by revenue, down Tencent (TCEHY) and Sony (SONY), the tech elephantine said. The woody marks different consolidation determination wrong the gaming manufacture — and monolithic stake connected the aboriginal of the metaverse.

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9:36 a.m. ET: Wall Street's large indexes plunge arsenic complaint worries persist

Here were the main moves astatine markets arsenic trading reopened aft the vacation weekend:

S&P 500 (^GSPC): -68.15 (-1.46%) to 4,594.70
Dow (^DJI): -550.15 (-1.53%) to 35,361.66
Nasdaq (^IXIC): -284.99 (-1.91%) to 14,608.77
Crude (CL=F): +$0.83 (+0.99%) to $84.65 a barrel
Gold (GC=F): -$1.10 (-0.06%) to $1,815.40 per ounce
10-year Treasury (^TNX): +0.68 bps to output 1.84%

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7:40 a.m. ET: Goldman Sachs nett misses expert estimates

Goldman Sachs (GS) reported fourth-quarter net that fell beneath expert expectations — reflecting a diminution successful nett for the past 3 months of the twelvemonth owed to weakness successful its trading arm. Still, the concern bank's robust woody enactment helped it station grounds full-year profits.

Shares of Goldman Sachs were down much than 2.5% up of unfastened to astir $381 a piece.

The company's results showed nett net applicable to communal shareholders fell to $3.81 cardinal successful the play ending December 31, from $4.36 cardinal the 4th a twelvemonth earlier. Earnings per stock fell to $10.81 from $12.08 the anterior year.

Consensus expert estimates expected the slope to study adjusted net of $11.65 per stock connected gross of $12.010 billion, according to Bloomberg data.

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