Stock market today: Dow, S&P 500, Nasdaq futures sell-off as government shutdown looms, inflation data improves but still sticky
Published On Dec 20, 2024, 8:53 AM
US stock futures indicate a challenging day ahead for Wall Street, attributed to the House of Representatives rejecting a spending bill, increasing the risk of a government shutdown. Key inflation data shows a slowing in price increases, potentially affecting Federal Reserve interest rate cuts next year. Futures tied to major indices fell, notably the tech-heavy Nasdaq. Notable sell-offs occurred in chip stocks, with companies like NVIDIA and AMD under pressure. Additionally, Novo Nordisk's stock plunged over 20% after a disappointing drug trial, while Tesla shares dropped 6% due to a recall.
Stock Forecasts
SPY
Negative
Given the increased risk of a government shutdown, weakening inflation data, and disappointing earnings reports from major stocks like Novo Nordisk, the broad market sentiment appears negative. Investors may become more risk-averse, leading to more selling pressure, particularly in tech have stocks due to their previous high valuations and sensitivity to economic changes.
NVO
Negative
The significant drop in Novo Nordisk's stock introduces a potential buying opportunity for investors who can tolerate volatility, particularly if the market stabilizes and the company addresses the shortcomings of their drug in future updates. However, in the immediate term, the sentiment around NVO is strongly negative. Therefore, careful consideration is needed before investing.
TSLA
Negative
Tesla's recall news likely adds downward pressure on TSLA's stock in the short term. Given the recent trend and potential operational challenges, the stock remains at risk in the upcoming trading sessions, especially in light of macroeconomic pressures.
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