Stocks fall due to rising bond yields and strong US jobs report

From Nasdaq: 2025-01-10 11:45:40

Stocks across major indices, including the S&P 500, Dow Jones, and Nasdaq, are down today due to rising global bond yields. The US 10-year T-note yield hit a 14-month high, impacting stock prices. Unexpectedly strong US labor market data also raised concerns that the Fed may pause interest rate cuts.

Chip stocks are under pressure after reports that the Biden administration aims to restrict AI chip sales. Hawkish comments from Fed officials are also weighing on the market sentiment, with expectations of fewer rate cuts going forward. Overseas markets are lower, with European bond yields climbing to multi-month highs.

Interest rates are on the rise, with T-note prices falling to 8.5-month lows. Strong US payroll data and inflation expectations are pushing yields higher. European bond yields are also up, with the ECB expected to cut rates by 25 bps. Chip stocks, including Nvidia and Intel, are leading the decline in US markets.

Insurance and utility stocks are dropping due to increasing costs from California wildfires. Companies like Allstate and PG&E are seeing significant losses. Tech stocks like Roku and Hims & Hers Health are also down after downgrades. ON Semiconductor is facing a downgrade, contributing to the overall market decline.

Walgreens and Delta Air Lines are among the top gainers in the S&P 500, with strong earnings reports driving their stocks up. Energy stocks are climbing with WTI crude prices, lifting companies like Devon Energy and Chevron. Valero Energy is up after an upgrade, and Royalty Pharma announces a share buyback plan.

Snowflake is up following an upgrade, while Constellation Brands, Delta Air Lines, TD SYNNEX Corp, and Walgreens Boots Alliance are reporting earnings today. The market outlook remains uncertain as investors navigate through changing economic conditions and policy decisions.



Read more at Nasdaq: Stocks Tumble as Bond Yields Soar on a Strong US Jobs Report