Stocks fell as bond yields rose on positive US economic data

From Nasdaq: 2025-01-07 18:30:29

The S&P 500, Dow Jones, and Nasdaq all closed down on Tuesday, with tech stocks leading the losses. Bond yields spiked after positive US economic reports, signaling a possible Fed rate hold. Micron Technology rose on news of supplying memory chips to Nvidia. US Nov trade deficit widened, but job openings and ISM services index beat expectations.

The markets are watching economic reports closely this week, including FOMC meeting minutes and US payroll data. Overseas markets settled higher, with Euro Stoxx 50 and China’s Shanghai Composite up. Interest rates rose as T-notes fell after strong US economic data. European government bond yields also climbed.

Eurozone CPI rose in Dec, meeting expectations. ECB inflation expectations increased, with swaps pricing in a rate cut at the ECB’s upcoming meeting. US stock movers included Palantir, Nvidia, Amazon, Meta Platforms, Apple, and Microsoft. Bitcoin’s drop led to losses for MicroStrategy and other tech stocks.

Gainers included Micron Technology, Moderna, Carvana, and Inari Medical. Hospital and pharmacy stocks rose on severe flu season data. Labcorp Holdings and Alaska Air Group also saw gains. Earnings reports for 1/8/2025 include Acuity Brands, Albertsons Cos, Jefferies Financial Group, and MSC Industrial Direct.



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