From Nasdaq: 2025-01-16 18:21:03

The S&P 500, Dow Jones, and Nasdaq closed down on Thursday, with futures also showing declines. Megacap tech weakness and health insurance stock retreats impacted the market. Chip makers’ strength provided some support. Bond yields fell on dovish Fed comments, with potential for rate cuts this year. US economic data was mixed.

Stocks rallied on Wednesday, supported by lower bond yields and easing inflation. Analysts expect strong Q4 earnings growth. The market anticipates a 3% chance of a rate cut at the upcoming FOMC meeting. Overseas markets settled higher, with European bond yields dropping. ECB minutes hinted at potential rate cuts.

Weakness in tech stocks like Apple and Tesla dragged the market down, with UnitedHealth Group’s revenue miss impacting health insurance stocks. US Bancorp and Texas Instruments also saw declines. Chip stocks rallied after upbeat forecasts from Semiconductor Manufacturing Co. Dexcom and Estee Lauder were top gainers. Morgan Stanley reported strong trading revenue.

Earnings reports for companies like Schlumberger, State Street, and Truist Financial were released. The author of the article did not hold any positions in the mentioned securities. Information provided is for informational purposes only. Markets remain volatile with mixed economic data influencing investor sentiment.



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