HERE’S WHAT’S HAPPENING

Markets: Stocks did not take a day off for the holiday yesterday, and like the rest of us in that position, they really wish they had. The Nasdaq fell to a two-year low, in part because chipmakers like AMD and Nvidia are taking a hit from strict new rules limiting exports to China. With the sanctions, President Biden is taking this tech battle with China to the next level.

The Fed’s vice chair commits to fighting inflation. Lael Brainard said yesterday that the central bank was taking note of rising global economic risks — but was focused on raising interest rates to tame rising prices. Meanwhile, Jamie Dimon of JPMorgan Chase warned that the U.S. could enter a recession by the middle of next year.

The Bank of England expands its purchases of British government bonds. The central bank will now buy inflation-linked bonds for the first time, hoping to avert “fire sales” by pension funds. It also warned that dysfunction in the government bond market posed “a material risk to U.K. financial stability.”

A union rejects President Biden’s rail compromise. The Brotherhood of Maintenance of Way Employees Division of the Teamsters, which has 12,000 members, failed to ratify the labor deal brokered by the White House last month. If more unions follow suit, the U.S. could suffer a debilitating rail strike.

The nasal version of AstraZeneca’s Covid vaccine fails in a clinical trial. The formulation generated antibody responses in only a minority of trial participants. The results dampen hopes for a nasal vaccine, which would be easier to administer than injections.

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