Stock market news live updates: January 20, 2022

U.S. stock futures traded sideways Wednesday evening after a turbulent day in markets that saw the Nasdaq close in correction territory — or at least 10% down from its peak — as rising bond yields and concerns around tighter monetary policy continued to plague investors.

Contracts on all three major indexes hovered near breakeven after the tech-heavy Nasdaq Composite logged a closing level more than 10% below its November record high in the earlier session

The Federal Reserve is in a blackout period ahead of its policy-setting meeting next week but remained in focus as Treasury yields soared in anticipation of the central bank’s move on interest rates. The benchmark 10-year note topped 1.9% on Wednesday to mark the highest level since January 2020 before modestly retreating to 1.85%. Meanwhile, volatility in equities has persisted as investors’ expectations for growth is stymied by the prospect of tightening policy.

“At this stage in the business cycle, it’s less about the level of rates than about the shock in interest rates, and that shock will eventually wear off,” Clearnomics market strategist James Liu told Yahoo Finance Live. “You need a period where the market gets used to the fact that the Fed might have to accelerate interest rates.”

Liu added that worries have been compounded by the Federal Reserve’s game of catch-up, while investors and economists have called for the central bank to act on rising price levels.

Panic over a rise in interest rates is…