Stocks drop as bond yields rise, concerns about tariffs and mixed economic data

From Nasdaq: 2025-01-08 16:05:47

The S&P 500, Dow Jones, and Nasdaq are all down today due to rising global bond yields and concerns about Trump’s tariff plans. The US 10-year T-note yield hit an 8-1/2 month high. Dovish comments from Fed Governor Waller helped limit losses. Economic data showed mixed labor market news, with weaker-than-expected ADP employment change but lower-than-expected initial unemployment claims.

US MBA mortgage applications fell, with the purchase mortgage subindex down and refinancing sub-index up. Dec ADP employment change was weaker than expected, while weekly initial unemployment claims unexpectedly fell. The market awaits economic reports and FOMC meeting minutes. Markets are discounting a 5% chance of a rate cut at the January FOMC meeting.

Overseas stock markets are mixed, with Euro Stoxx 50 down and China’s Shanghai Composite up. Interest rates are down, with the 10-year T-note yield climbing. European government bond yields are moving higher. Economic data from Eurozone showed declining economic confidence and rising PPI.

Chip stocks like AMD and ON Semiconductor are under pressure. Edison International is down due to wildfires. Palo Alto Networks, Johnson & Johnson, and Fidelis Insurance Holdings are also down. Moderna, WK Kellogg, and AIG are among the losers. eBay is up due to a partnership with Meta Platforms.

Maplebear Inc and AAR Corp are up, while Autodesk and Boston Scientific are also seeing gains. Workday is up after an upgrade. Earnings reports for 1/8 include Acuity Brands, Albertsons Cos, Jefferies Financial Group, and MSC Industrial Direct Co.



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