Wall Street goes 0-2

It’s only been two days of trading, but markets aren’t looking all that cheery in the new year. US stocks extended their losses in the aftermath of minutes from the US Federal Reserve’s last meeting. The central bank’s policymakers poured water on breathless predictions of early 2024 interest rate cuts. The Nasdaq 100 fell 1.1% as investors continued to retreat from the tech sector while the S&P 500 slid 0.8%. Meanwhile the Russell 2000 small-caps gauge notched its worst drop since the March regional banking meltdown. “Overall, it was a hawkish update from the Fed,” said Ian Lyngen at BMO Capital Markets. —David E. Rovella

Two explosions near the grave of Iranian commander Qassem Soleimani killed at least 103 people and injured 188 in what a senior official described as a terrorist attack. The explosions were caused by bombs planted in a suitcase and a car near the graveyard entrance and detonated remotely, the state-run Islamic Republic News Agency reported. The attack—coming on the fourth anniversary of Soleimani’s assassination in a US drone strike ordered by then-President Donald Trump—may further escalate regional tensions tied to the Israel-Hamas war. The bombing also came less than 24 hours after a suspected Israeli drone strike killed a senior leader of Hamas in Lebanon. Meanwhile, in response to US strikes on Iran-aligned Houthi rebels in the Red Sea, Iran dispatched a warship to that area. On Wednesday, a dozen countries warned the Houthis against continuing attacks on shipping in the critical waterway.

Poland called on Western allies to tighten sanctions on Russia and to supply Kyiv with long-range missiles in response to the latest series of attacks by the Kremlin. At least four people were killed and another 92 wounded following strikes on Tuesday that mainly targeted Ukraine’s two largest cities, Kyiv and Kharkiv. An exchange of aerial attacks has intensified in recent days as Vladimir Putin’s invasion approaches its third year and the ground conflict is mired in a stalemate. NATO meanwhile said on Wednesday that it would help buy as many as 1,000 Patriot missiles so that allies can better protect their territory in light of Russia’s widening assault, the Associated Press reported.

US job openings fell in November to their lowest level since early 2021 as fewer workers voluntarily quit and the number of hires fell. The so-called quits rate, which measures people who voluntary leave their jobs as a share of total employment, ticked down to its lowest point since September 2020. It may imply Americans are feeling less confident in their ability to find other jobs in the current market or to get new jobs that are better paid. The ratio of openings to unemployed people held at 1.4. The figure has eased substantially over the past year, indicating labor supply and demand has moved into better balance. At its peak in 2022, the ratio was 2 to 1.

With the US unemployment rate still hovering near historical lows, advocates for America’s jobless worry that solid labor-market data is hiding the pain of those stung by recent cuts in sectors like housing, technology and human resources. It’s also allowing state legislators to keep payouts achingly low. Five states have weekly payment maximums below $300, despite inflation that’s raised the price of an average basket of goods and services by almost 20% since 2020. One third of states don’t account for wage growth, and by extension inflation, in their payouts.

Barrick Gold Corp. is said to have spoken with some of First Quantum Minerals Ltd.’s major investors to gauge their support for a potential takeover after the sudden closure of First Quantum’s flagship mine wiped out more than half its market value. Barrick has been seeking to expand in copper, and a deal with First Quantum would transform the company into one of the world’s biggest producers. The smaller Canadian miner was left vulnerable after Panama ordered the closure of its biggest and most profitable asset, Cobre Panama mine. First Quantum’s share price collapsed, shedding more than 60% of its value last year. The company is currently worth about $6 billion, while Barrick is worth about $31 billion.

A new year has brought more bad news for the world’s richest man. With a lineup of relatively old models and a stumbling rollout of his Cybertruck, Elon Musk and Tesla received a rude New Year’s awakening. The electric vehicle pioneer just lost pole position to BYD Inc., a Chinese battery and EV maker that is making inroads across Asia and Europe.

The University of California is paying $700 million for a former Los Angeles shopping mall that had been redeveloped as offices for Alphabet’s Google, with the school system planning to convert the campus to a medical and engineering research park. The school will use the site for an immunology and immunotherapy institute, as well as a center for quantum science and engineering.

The vestiges of an ancient forest tell the story of just how bad things are at the drought-stricken Panama Canal. A few hundred feet from the massive ships hauling goods across the globe, tree stumps rise above the waterline. They’re all that remains of a woodland flooded more than a century ago to create the canal. In the immediate aftermath of what’s usually the rainy period, they should be fully submerged—but today they’re not. They’re a visible reminder of how parched conditions have crippled a waterway that handles $270 billion a year in global trade. The Panama Canal Authority is weighing potential fixes that include an artificial lake to pump water into the canal and cloud seeding to boost rainfall, but both options would take years to implement, if they’re even feasible.

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