Traders work on the floor of the New York Stock Exchange on Jan. 10, 2025 in New York City.
NYSE
Stocks slipped Monday as key tech shares that have led the bull market continued to be dumped by investors.
The S&P 500 lost 0.9%, and the Nasdaq Composite dropped 1.4%. The Dow Jones Industrial Average was the relative outperformer, rising just 20 points, or 0.05%. All three benchmarks are down for the last two weeks, with tech shares causing most of the damage.
Palantir and Nvidia, two of the bull market leaders popular with retail investors, shed more than 3% each — building upon their losses from last week. Nvidia fell nearly 6% during the period, while Palantir lost 11%. Other popular tech shares including Tesla and Micron were also down.
Surging bond yields have been one of the catalysts for the sell-off in growth-oriented shares. The 10-year Treasury yield on Monday touched the highest level since November 2023. Yields surged on Friday following a stronger-than-expected jobs report that cast doubt on further rate cuts by the Federal Reserve.
“With current inflation and inflation expectations elevated and sticky, and with bond yields having risen sharply and quickly, equity investors are starting to become more cautious,” said Katherine Nixon, chief investment officer for wealth management at Northern Trust.
Stocks are coming off a losing week. The Dow lost 697 points on Friday. The 30-stock Dow and S&P 500 both ended the week 1.9% lower, while the Nasdaq Composite lost 2.3%. All three are now in the red for the young year.
Investors are hoping the start of the fourth-quarter earnings season with stabilize markets. Banks including Citigroup, Goldman Sachs and JPMorgan Chase report on Wednesday, while Morgan Stanley and Bank of America will post results on Thursday.
Data this week includes the December consumer price index on Wednesday morning. Before that, investors will parse wholesale inflation with December’s producer price index report on Tuesday.
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