Tech led a slide in US stocks on Monday, while the dollar and bond yields climbed amid fading hopes for interest rate cuts ahead of this week’s key consumer inflation report.
The S&P 500 (^GSPC) sank 0.4%, while the Nasdaq Composite (^IXIC) tumbled about 1%. But the Dow Jones Industrial Average (^DJI) which includes fewer tech stocks, rose 0.5%.
Stocks are shaping up for another rough session after Friday’s plunge, which wiped out all year-to-date gains for Wall Street’s major gauges. A hot December jobs report rattled markets, spurring concern that signs of strength in the economy will encourage the Federal Reserve to keep rates higher for longer.
As of Monday, traders are betting there will be no rate cut until at least September, per the CME FedWatch tool, and that the Fed will lower borrowing costs by just 30 basis points in the whole of 2025.
That has intensified the spotlight on the Consumer Price Index reading for December, due on Wednesday, given one big concern for markets is that inflation won’t cool to the central bank’s 2% target.
Adding to the gloom, oil prices rose to their highest levels in five months before paring gains after the US imposed tougher sanctions on Russia’s crude industry, threatening supply to China and India. Brent (BZ=F) climbed more than 2% to trade above $81 a barrel, while West Texas Intermediate (CL=F) changed hands near $79.
Shares of Nvidia (NVDA), Apple (AAPL), and Tesla (TSLA) slid as all the “Magnificent Seven” tech megacaps lost ground in the market turmoil. Europe’s largest pension fund revealed that it sold its entire stake in Tesla over CEO Elon Musk’s pay package.
Oil jumps to $81 per barrel over increasing supply worries stemming from sanctions on Russian energy
Oil extended gains to a five-month high on Monday as worries grew over supply disruptions impacting big importers China and India from wide-ranging sanctions against Russian crude.
West Texas Intermediate crude (CL=F) rose roughly 2% to trade above $78 per barrel while Brent crude futures (BZ=F), the international benchmark price, surpassed $81, the highest level since August.
The move higher comes after an almost 4% surge on Friday in reaction to wide-ranging sanctions against Moscow imposed by the US, targeting oil executives, traders, and more than 180 vessels, bringing the total number of ships sanctioned to 451, according to JPMorgan analysis.
“There are indications that, similar to Indian refiners who avoid taking Russian oil in tankers under sanctions or in ships insured by sanctioned Russian insurers, China is also becoming a less-permissive buyer,” wrote JPMorgan analysts in a recent note.
Today at 4:43 PM UTC
Bitcoin slumps 3%, hovers below $92,000 per token
Bitcoin (BTC-US) fell 3% over the past 24 hours to hover just below $92,000 per token. Enthusiasm for the token has waned in recent days as risk assets have sold off amid rising US Treasury yields and a higher US Dollar.
Meanwhile bitcoin proxy MicroStrategy (MSTR) bought about 2,530 tokens for $243 million between Jan.6 and Jan. 12, according to the company’s latest filing.
The company currently holds approximately 450,000 bitcoins. MicroStrategy stock slumped 4% on Monday.
Today at 3:38 PM UTC
Nvidia, Tesla, Meta fall as ‘Mag 7’ stocks lead tech sell-off
‘Magnificent 7’ stocks led the tech sell-off on Monday as investor optimism over Federal Reserve rate cuts this year began to fade ahead of a highly anticipated inflation print this week.
EV maker Tesla (TSLA) retreated around 1% while social media platform Meta (META) and iPhone maker Apple (AAPL) both shed more than 2%. Microsoft (MSFT) and Alphabet (GOOG, GOOGL) posted smaller drops.
Tech stocks extended their declines from Friday, which came as a hotter-than-expected jobs report dashed hopes that the Fed would cut rates at least two times this year. Investors expect policymakers to shift any easing to the fall at the earliest.
Growth stocks lost ground as the yield on the 10-year Treasury (^TNX) ticked higher and the US Dollar Index (DX-Y.NYB) rose to its highest level since 2022.
Today at 3:16 PM UTC
UnitedHealth stock rallies, helps lift Dow into positive territory
Shares of UnitedHealth (UNH) rose nearly 4% on Monday morning, helping lift the Dow Jones Industrial Average (^DJI) into positive territory in early trading.
UnitedHealth, along with other insurers like Humana (HUM), rose after Medicare released a proposal that would allow for bigger-than-expected payments for insurance companies in 2026.
The company said it expects revenue in 2025 to come in anywhere between $1.5 billion and $2.5 billion after hitting as much as $3.1 billion last year.
Today at 2:32 PM UTC
Stocks slide as hopes of rate cuts fade
Stocks opened lower on Monday, with tech leading the losses as optimism over interest rate cuts this year continued to fade and bond yields rose.
The S&P 500 (^GSPC) sank 0.8%, while the Nasdaq Composite (^IXIC) dropped 1.3%. The Dow Jones Industrial Average (^DJI) fell about 0.1%.
Stocks continued their sell-off from Friday’s plunge, which wiped out all year-to-date gains for the major averages.
A hot December jobs report spooked the markets, as investors faced the possibility that the Federal Reserve will make just two rate cuts this year.
Among Monday’s laggards, shares of Nvidia (NVDA) and Tesla (TSLA) slid more than 3% and 2%, respectively, as the “Magnificent Seven” group lost ground in the market sell-off.
Today at 1:13 PM UTC
Good morning. Here’s what’s happening today.
Today at 10:38 AM UTC
Another risk-off morning
Investors awake to markets continuing their post-red-hot jobs report tantrum.
CME – Delayed Quote•USD
5,838.00
–
(-0.48%)
As of 12:44:36 PM EST. Market Open.
The rise in yields and now the rise in energy prices remain in focus. Both of these things happening at the same time is the worst possible scenario for the bulls. At the time of this writing, premarket weakness is being seen in top momentum names such as Tesla (TSLA) and Nvidia (NVDA).
Important point this morning by the Goldman Sachs team:
“The move in rates is also now tightening financial conditions such that it may weigh on growth and risk assets. Positions that benefit from lower US yields now look more attractive, especially for portfolios that already embrace the US growth theme.”
