S&P 500 gains nearly 27% in 2021 | Dow posts 5-month win streak | Fed in focus for 2022

U.S. stocks finished their final trading session of the year lower, capping off a record-setting 2021 that came despite the persistent headwinds of Covid-19.

VIEW IN BROWSER | SUBSCRIBE FRI, DEC 31, 2021 EVENING BRIEF AS OF FRI, DEC 31, 2021 • 04:52 ET DJIA 36338.30 -0.16% -59.78 S&P 500 4766.18 -0.26% -12.55 NASDAQ 15644.97 -0.61% -96.59   Most Active DOW NAME LAST CHG %CHG AAPL 177.57 -0.63 -0.35% MSFT 336.32 -3.00 -0.88% INTC 51.50 -0.24 -0.46% S&P 500 NAME LAST CHG %CHG AAPL 177.57 -0.63 -0.35% F 20.77 +0.30 +1.47% AMD 143.90 -1.25 -0.86% NASDAQ NAME LAST CHG %CHG AAPL 177.57 -0.63 -0.35% AMD 143.90 -1.25 -0.86% NVDA 294.11 -1.75 -0.59%   EDITOR'S NOTE U.S. stocks dipped Friday in the final trading session of 2021 to close out a banner year in the face of the Covid-19 pandemic.   The three major averages all closed lower on the day, but finished December higher. The Dow Jones Industrial Average posted its fifth consecutive winning month, while the Nasdaq Composite saw its sixth straight monthly gain.   For the year, the indexes each notched double-digit gains. The S&P 500 returned a whopping 26.89% for its third winning year in a row. The Dow gained 18.73% and the Nasdaq Composite rose 21.4% in 2021, also notching three-year winning streaks.   "Stocks truly had a remarkable year in 2021—not only in terms of the robust gains generated but also in the lack of any significant pullbacks for the S&P 500 in a year of an ongoing pandemic," Keith Lerner, co-chief investment officer at Truist, said in a note Friday. The S&P 500 notched 70 record closes this year, the second-highest annual total behind 1995′s 77 closing highs. The benchmark index posted a record close at least once a month in 2021.   All 11 sectors in the S&P 500 finished 2021 higher, led by energy and real estate with more than 40% gains each. Devon Energy was the top-performing stock in the index this year, returning 178.6%.   Looking forward, many market participants anticipate tougher conditions for stocks in 2022 as the Federal Reserve wanes off its pandemic-era easy monetary policy. Still, strategists see gains ahead in the new year.   "While we don't expect 2022 performance to be as strong as 2021, we do expect the equity markets to continue trending higher," Wells Fargo Investment Institute's Chris Haverland said in a note. Hannah Miao | CNBC Associate Markets Reporter @HannahMiao_ Watch our live stream for all you need to know to invest smarter. TOP NEWS  S&P 500 ends 2021 with a nearly 27% gain, but dips in final trading day 2022 will be the 'do or die' moment for Congress to take action against Big Tech From SPACs to chips: Five ways 2021 may have forever changed the auto industry Travel in the omicron surge: What airlines owe you if they cancel your flight Tesla Energy asks employees to fight policy proposal that would make rooftop solar more expensive in California Bank of America allows remote work in early January, source says Biden to speak with Ukraine President Zelenskyy as Putin's military looms on Russia-Ukraine border Here's what to know about your 2022 Medicare costs Sweetgreen stock is one to watch in 2022 after this year's IPO Bank accidentally deposits $176 million into people's accounts on Christmas Day   TOP VIDEO International subscribers will be key for Disney+ growth, says Arjuna Capital's Lamb   CNBC PRO JMP downgrades Peloton to market perform, says consumer interest is slumping   SPECIAL REPORTS Financial help can lead to happiness. How to find the right professional for you Times Square set for New Year's Eve celebration as omicron spread looms   Unsubscribe Manage Newsletters Terms of Service Join the CNBC Panel Digital Products Feedback Privacy Policy   © 2021 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

Democrats' 2022 to-do list piles up as midterms approach

Your guide to how Washington shapes business and the economy

VIEW IN BROWSER | SUBSCRIBE FRI, DEC 31, 2021 CNBC POLITICS EDITOR'S NOTE Good afternoon and happy New Year,   This is CNBC.com Economic Policy Reporter Thomas Franck, in for Politics Editor Mike Calia.   From salvaging the Build Back Better social and climate plan to managing Federal Reserve nominees, Democrats have a lot to do in 2022 – and the stakes are high. The upcoming midterm elections threaten to erase the party's narrow control over Congress. That is, unless they can convince U.S. voters to lend them more time to tackle Covid-19 and tamp down inflation.   Here are some of the stories CNBC Politics is following in 2022: Building Back Better? Democrats' $1.75 trillion social safety and climate bill hit a wall after conservative Democratic Sen. Joe Manchin said he would oppose it. Democrats likely will not give up on the legislation, which packages several key promises the party made in the 2020 election. While Manchin has already won several concessions, Biden and Senate Majority Leader Schumer could further change the plan to meet the West Virginia lawmaker's demands.  Schumer still plans to put the bill up for a vote: As Democrats look to approve the bill with a simple majority in the face of unified GOP opposition, a no vote from Manchin alone would sink it. Schumer earlier this month told Democrats that "we will keep voting on it until we get something done." Republicans will focus on inflation in 2022: The GOP hopes to tap into voters' frustrations with high prices at supermarkets and gas stations as they challenge Democrats in the 2022 elections. The party argues Biden should scrap his massive $1.75 trillion plan to avoid fueling more inflation.   We spoke with two GOP candidates for Senate: Jeff Bartos, who hopes to replace retiring Pennsylvania Sen. Pat Toomey, told CNBC that his "fellow Pennsylvanians are saying that higher prices at the grocery stores and at the gas pump are killing them." Jim Lamon of Arizona said he's concerned about U.S. supply chains and Washington's economic ties with China.   Voting rights vaults to the top of Democrats' to-do list: Democrats will take one more shot at passing a voting-rights bill in 2022. Many in the party consider elections legislation urgent as states around the country push restrictive voting laws in the wake of the Jan. 6 attack on the U.S. Capitol. Passing an elections law will be daunting: Republicans oppose federal reforms, and at least two Democratic senators oppose making a filibuster carveout to pass a voting bill. China competition bill could be last area of bipartisanship before election: The Senate in June passed a massive bipartisan bill to bolster U.S. scientific research and overhaul the nation's semiconductor manufacturing. Republicans and Democrats made no attempt to hide the U.S. Innovation and Competition Act's main goal of keeping the U.S. competitive with China. Former Defense Department analyst Dewardric McNeal told CNBC that the $250 billion bill has stalled in the House in part because many lawmakers are waiting for direction from the White House.   Thanks for reading CNBC Politics. Have a great and safe New Year's Eve.   Thoughts? Tips? Email us at CNBCPolitics@nbcuni.com.   Have friends or colleagues who might like this newsletter? They can sign up here.  Mike Calia @Michael_Calia KEY STORIES  Democrats look to salvage tattered legislative agenda as they face 2022 midterm elections President Biden's Build Back Better Act, government funding, Fed nominations, voting rights, and a research and development bill are all on Congress' to-do list. Economists warn of inflation inequality as poor get slammed by rising prices The coronavirus pandemic has led to a new era of inflation inequality, economists warn, in which poor households bear the brunt of rising prices.   2022 will be the 'do or die' moment for Congress to take action against Big Tech Proposals to update competition law, establish online privacy rights and protect kids from harm on the internet have bipartisan support. Biden to speak with Ukraine President Zelenskyy, says he 'made it clear' to Putin that Russia cannot invade Biden this week urged Russia's Vladimir Putin to lower the tensions with Ukraine, warning that the U.S. was prepared to "respond decisively" if Russia invades. Warren Buffett tells Bernie Sanders he won't intervene in strike at Berkshire-owned company Bernie Sanders asked Warren Buffett to get involved in a strike at Special Metals, which is owned by Berkshire Hathaway subsidiary Precision Castparts. Fauci predicts omicron Covid wave will peak in U.S. by end of January "It's tough to say," said Fauci, President Joe Biden's top medical aide, when asked on CNBC's "Closing Bell" when the omicron-fueled surge will start to recede. Jury finds Jeffrey Epstein friend Ghislaine Maxwell guilty in sex crimes trial British socialite Ghislaine Maxwell was convicted Wednesday of luring teenage girls to be sexually abused by late sex criminal and financier Jeffrey Epstein. Pro-Trump lawyer says his plantations were go-to spots for those aiming to overturn the 2020 election Trump ally Lin Wood told CNBC that his plantations in South Carolina were used as a hub for those who wanted to overturn the 2020 election. Biden advisor's brother plans to lobby for Taiwan company that developed Covid-19 vaccine Jeff Ricchetti was hired to lobby for biopharmaceutical firm Medigen, which has developed a Covid-19 vaccine. Friends in low places: These politicians' best pals are their worst enemies Rep. Matt Gaetz is only the latest example of a politician damaged by people they thought were their friends.     Unsubscribe Manage Newsletters Terms of Service Join the CNBC Panel Digital Products Feedback Privacy Policy   © 2021 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