Stock market today: Dow, S&P 500, Nasdaq futures sink amid cratered hopes for 2025 rate cuts
Zettelkasten Automated Post
Monday saw US stock futures slide, largely led by tech, while bond yields and the dollar experienced a rise amid dwindling hopes for interest-rate cuts in front of this week’s significant consumer inflation report. Traders now anticipate no rate cut until at least September, prematurely drawing attention to the Consumer Price Index reading for December. Tech stocks underwent significant losses, with shares of Nvidia and Tesla dropping as all the “Magnificent Seven” tech megacaps suffered in the market turmoil.
Coupled with a gloomy jobs report, another factor adding to the market downturn is the rise in oil prices, which reached their highest levels in five months after new US sanctions on Russia’s crude industry posed an unexpected risk to supply for China and India. High momentum stocks like Tesla and Nvidia felt the effects of this pre-market weakness. The Goldman Sachs team highlighted that the increased rates might strain growth and risk assets, turning positions that are more beneficial from lower US yields more attractive.
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