Stock market today: Dow, S&P 500, Nasdaq futures sink amid cratered hopes for 2025 rate cuts
Published On Jan 13, 2025, 6:54 AM
U.S. stock futures for the Dow Jones, S&P 500, and Nasdaq are declining significantly amid worries about the Federal Reserve's interest rate policies. The anticipation of no rate cuts until September has cast a shadow over market optimism following a strong December jobs report, which suggested a resilient economy but raised concerns about continued high rates. The yields on Treasury bonds are also rising, exerting more pressure on stocks. Major tech stocks like Nvidia and Tesla are experiencing losses amidst this market turmoil.
Stock Forecasts
SPY
Negative
The overall sentiment in the market is negative, driven by rising bond yields and diminished hopes for impending rate cuts. This volatility, especially in tech stocks, indicates a bearish outlook in the short term. Investors may want to consider protective strategies or seek opportunities in sectors less affected by rising rates.
TSLA
Negative
In light of inflation pressures and recent oil price increases, sectors sensitive to the economic cycle, such as consumer discretionary tech stocks, are likely to remain under pressure as the market reacts to the Fed's likely stance on preserving higher rates.
NVDA
Negative
The overall rising yields and their effects on tech stocks create a tough environment. While some opportunities may arise in defensive sectors, currently the market's direction indicates further downside potential primarily due to tech's involvement in the market downturn.
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