Investors are bracing for more earnings from mega-cap tech firms such as Alphabet, Facebook, and Amazon, which are all set to report this week.

JPMorgan economists last week said oil could soar to $150 a barrel during the first quarter of 2022 if the conflict leads to a supply shock.

All indexes, dragged by tech giants from Meta to Tesla, were in the red. The 10-year Treasury yield rose to 1.818%, its highest level in two years.

Low inventories, low spare capacity, and low investment will continue to drive oil prices higher, Morgan Stanley said.

The CPI gained 7% year-over-year last month, in line with the median forecast. The pace reflects the strongest inflation since 1982.

The US added 199,000 nonfarm payrolls last month, far lower than the 450,000 median estimate. Hiring faltered in December as Omicron cases surged.

Markets gave up gains late in the trading day after getting an early boost when the Labor Department reported a drop in weekly jobless claims.

The S&P 500 edged higher to clinch its 70th record for 2021 while the Dow Jones Industrial Average also edged up to mark its sixth consecutive win.

The S&P 500 will try again for a fresh high after pulling back in the final minutes of trade Tuesday and missing out on its 70th record close of 2021.

US stock futures marked modest gains Friday as investors anticipated the inflation data that is coming out today.

The disappointing November jobs report added to the uncertainty as investors try to chart the path of Fed policy.

Fed Chief Jerome Powell also warned investors against the Omicron strain, which he said threatens to slow down the country's economic recovery.

Little is known about the new COVID strain emerging in Africa. That hasn't stopped traders from betting big on lockdowns and a return to telework.

Bond yields continued to rise with the 10-year Treasury note rising slightly to 1.672%, well above a recent low of 1.418%.

Bond yields continued to rise with the key 10-year Treasury note edging up to 1.648%, well above a recent low of 1.418% touched in November.

The yield on 10-year Treasury fell to 1.522%. Oil prices slipped as the COVID-19 surge in Europe raised concerns about the economic recovery.

Stocks edged lower as Treasury yields climbed on expectations the Fed may have to hike interest rates sooner.