Nasdaq closes in correction territory | P&G, Bank of America’s earnings beats | Inflation could boost these stocks

The technology-focused index lost 1.15% on Wednesday.

VIEW IN BROWSER | SUBSCRIBE WED, JAN 19, 2022 EVENING BRIEF AS OF WED, JAN 19, 2022 • 05:01 ET DJIA 35028.65 -0.96% -339.82 S&P 500 4532.76 -0.97% -44.35 NASDAQ 14340.25 -1.15% -166.64   Most Active DOW NAME LAST CHG %CHG AAPL 166.23 -3.57 -2.10% MSFT 303.33 +0.68 +0.22% INTC 53.62 -1.14 -2.08% S&P 500 NAME LAST CHG %CHG F 22.45 -1.93 -7.92% AAPL 166.23 -3.57 -2.10% BAC 46.44 +0.18 +0.39% NASDAQ NAME LAST CHG %CHG AAPL 166.23 -3.57 -2.10% AMD 128.27 -3.66 -2.77% NVDA 250.67 -8.36 -3.23%   EDITOR'S NOTE The Nasdaq Composite is officially in correction territory.    The technology-focused index lost 1.15% on Wednesday, dragging it 10.7% from its most recent record close in November 2021.    Rising government bond yields are the culprit of the Nasdaq's weakness in 2022. The U.S. 10-year Treasury hit 1.9% earlier on Wednesday, its highest level since December 2019. The bond rate has rallied nearly 40 basis points this year as investors prepare for an aggressive rate-hiking cycle from the Federal Reserve in order to combat inflation.   Technology stocks are disproportionally affected by rising interest rates as their future earnings appear less attractive to investors. Pandemic-era winners like Zoom Video have pulled the growth-centered index into its correction.    "I would call what we are experiencing in rates markets a healthy case of indigestion. … Those moments of pivot from rates that were, in the second half of last year, stable or even declining, into one where they are rising is bound to cause ramifications in market volatility," said Lauren Goodwin, economist and director of portfolio strategy at New York Life Investments.   "Any asset class or sector or even security that struggles to pass inflation on to consumers or is more rate sensitive is going to be more impacted by these moves than others," she added. The other major indexes continued their weak streak on Wednesday as investors looked past better-than-expected earnings. Strong results from Procter & Gamble and UnitedHealth couldn't hold up the Dow Jones Industrial Average, which fell nearly 340 points. The S&P 500 declined close to 1%.   Earnings season continues on Thursday with key reports from American Airlines and Netflix.    Of the 44 S&P 500 companies that have reported quarterly results, nearly 73% have topped Wall Street's expectations as of Wednesday's close, according to FactSet. Maggie Fitzgerald | CNBC Markets Reporter @mkmfitzgerald Watch our live stream for all you need to know to invest smarter. TOP NEWS  Nasdaq falls 1% Wednesday to close in correction territory, off 10% from its November record Biden will make 400 million N95 masks available to Americans for free After years of 5G hype and investment, Wednesday's network launch makes it real P&G earnings top estimates as price hikes offset rising costs, company raises 2022 sales forecast Peloton insiders sold nearly $500 million in stock before its big drop, SEC filings show Netflix's fourth-quarter earnings report is usually great for investors, but maybe not this time Charts show stock sell-off not over and broader market could correct 10% or more Bank of America tops profit estimates on better-than-expected credit costs Rising inflation could help bolster these stocks, Credit Suisse says Supreme Court's Gorsuch, Sotomayor dodge key detail as they deny rift over Covid masks   TOP VIDEO The Fed is miles behind the curve, says MKM Partners Michael Darda   CNBC PRO Ned Davis Research cuts view on stocks on worries over earnings and the Fed   SPECIAL REPORTS This is how the new IRS life expectancy tables affect required withdrawals from IRAs, 401(k) plans Here's how rising interest rates may affect your bond portfolio in retirement   Unsubscribe Manage Newsletters Terms of Service Join the CNBC Panel Digital Products Feedback Privacy Policy   © 2022 CNBC LLC. All rights reserved. A property of NBCUniversal. 900 Sylvan Avenue, Englewood Cliffs, NJ 07632 Data is a real-time snapshot *Data is delayed at least 15 minutes. Global Business and Financial News, Stock Quotes and Market Data and Analysis. Data also provided by THOMSON REUTERS Watch our live stream for all you need to know to invest smarter.