Stock market today: Dow revives as Nasdaq, S&P 500 slide amid rate-cut fears

Published On Jan 13, 2025, 9:46 AM

U.S. stock markets faced a challenging session with tech stocks leading declines as investor optimism faded regarding interest rate cuts by the Federal Reserve. The S&P 500 fell 0.4%, while the Nasdaq saw a sharper decline of about 1%. The rising bond yields and a strong dollar added pressure, with traders expecting no rate cuts until at least September. Key inflation data due this week increases market sensitivity to economic conditions. Notably, Moderna’s shares dropped by over 22% after the company revised its sales forecast downward, while UnitedHealth's stock rose nearly 4% after positive news regarding Medicare payments.

Stock Forecasts

NVDA

Negative

Tech stocks, particularly those in the 'Magnificent Seven' group, are struggling as investor sentiment shifts with rising bond yields and concerns over the economy. Nvidia, Tesla, and Apple's declines indicate ongoing volatility. Therefore, investors in tech should consider short-term strategies until stability returns.

UNH

Positive

UnitedHealth's stock performance, influenced by favorable Medicare payment proposals, suggests a positive trend for healthcare companies in this context. Investors may find opportunities in UNH and similar stocks due to potential growth in this sector from expected policy support.

TSLA

Negative

Despite the drops in the tech sector, the overall market appears affected by broader economic concerns, which might lead to further selling pressure in high-growth stocks. Investors should be cautious with high-beta names like TSLA until there is a clearer economic picture.

MRNA

Negative

Moderna's significant downward revision in revenue forecasts indicates potential trouble ahead for biotech stocks, especially those heavily reliant on vaccine demand. Investors should consider reviewing their positions in MRNA given the downgrade.

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