Stock market today: Nasdaq, S&P 500 sink amid cratered hopes for 2025 rate cuts

Published On Jan 13, 2025, 9:53 AM

The stock market faced significant losses today, with the S&P 500 down 0.8% and the Nasdaq down 1.6%, primarily due to diminished expectations for interest rate cuts in 2025. This drop was exacerbated by a strong December jobs report which hinted at continued high interest rates from the Federal Reserve. The 10-year Treasury yield has reached a 14-month high, while the US dollar has surged to a two-year peak. Concurrently, oil prices rose sharply following new sanctions on Russia, further squeezing market sentiment. Major tech stocks including Nvidia, Apple, and Tesla fell, with significant declines noted in Moderna's shares after the company slashed its 2025 sales forecast by $1 billion.

Stock Forecasts

SPY

Negative

The news suggests a bearish outlook primarily for tech stocks due to the rising interest rates and economic uncertainties. Investors may prefer to shift towards more stable sectors or fixed-income assets as the cost of borrowing remains high and inflation pressures persist.

MRNA

Negative

Given Moderna's drastic sales forecast cut, the oversupply and reduced demand for vaccines will likely hurt its financial outlook significantly. Investors could also view the lowered sales guidance as detrimental to the biotech sector as a whole.

Related News

Stocks are under pressure as strong data craters bets on the chances of Fed rate cuts.

SPY
XLY
XLP

The day after Jeff Bezos told a media outlet he was "very optimistic" about incoming Donald Trump's administration for space projects, his company scrubbed a rocket launch.

Stocks are under pressure as strong data craters bets on the chances of Fed rate cuts.

SPY
TSLA
NVDA