Transcribed

Stocks Slump Amid Strong Jobs Data, Rising Yields, and Chip Export Restrictions

Jan 13, 2025 · 3m 39s
Stocks Slump Amid Strong Jobs Data, Rising Yields, and Chip Export Restrictions
Description

## Major Index Performance - **S&P 500**: Down by 1.54% or 91.21 points to 5,827.04[3][5]. - **Dow Jones Industrial Average**: Down by 1.63% or 696.75 points to 41,938.45[3]. - **NASDAQ...

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## Major Index Performance
- **S&P 500**: Down by 1.54% or 91.21 points to 5,827.04[3][5].
- **Dow Jones Industrial Average**: Down by 1.63% or 696.75 points to 41,938.45[3].
- **NASDAQ Composite**: Down by 1.63% or 317.25 points to 19,161.63[3].

## Key Factors Driving Today's Market Direction
- **Strong Employment Data**: Robust jobs growth of 256,000 in December led to higher Treasury yields and inflation concerns, pressuring the market[3].
- **Rising Yields and Dollar**: The 10-year Treasury yield hit a 14-month high near 4.8%, and the U.S. Dollar Index rose, contributing to a risk-off mood[3].
- **New U.S. Restrictions on Chip Exports**: Announcements by President Biden impacted tech stocks, with Nvidia, Oracle, and Broadcom experiencing significant drops[3].

## Notable Sector Performance
- **Top Decliners**: Tech sector, particularly Nvidia (-2.7%), Oracle (-5%), and Broadcom (-2%)[3].
- **Top Gainers**: Healthcare sector, with Humana (+5%) and UnitedHealth Group (+3%)[3].

## Market Highlights
- **Most Actively Traded Stocks**: Tech stocks like Nvidia, Oracle, and Broadcom due to the new export restrictions[3].
- **Biggest Percentage Losers**: Oracle (-5%), Nvidia (-2.7%), and Broadcom (-2%)[3].
- **Biggest Percentage Gainers**: Humana (+5%) and UnitedHealth Group (+3%)[3].
- **Significant Market-Moving News Events**: Strong employment data, rising Treasury yields, and new U.S. restrictions on chip exports[3].

## Important Economic Data Releases and Their Impact
- **Nonfarm Payrolls**: December's robust jobs growth of 256,000 pushed Treasury yields higher and raised inflation concerns[3].
- **Upcoming Data**: Producer Price Index (PPI) and Consumer Price Index (CPI) releases on Wednesday, which could influence interest rates and market sentiment[3].

## Technical Analysis
- **Current Market Trend**: Bearish indicators, with the S&P 500 below the 50-day moving average and a head-and-shoulders topping pattern suggesting a downside target of 5670[2].
- **Key Support and Resistance Levels**: S&P 500 support at 5850 violated, with resistance around the 20-day moving average (5961)[2].
- **Trading Volume Analysis**: Not specified, but the market reaction to recent news indicates increased volatility.
- **VIX Movement and Implications**: The Cboe Volatility Index (VIX) rose by 1.66 to 21.2, indicating increased market volatility and risk aversion[3].

## Forward-Looking Elements
- **Pre-market Futures Indication**: Futures are indicating a continuation of the risk-off mood due to rising yields and geopolitical tensions[3].
- **Key Events to Watch for Tomorrow**:
- Producer Price Index (PPI) release
- Start of big bank earnings reports, including JPMorgan Chase[3][4].
- **Important Upcoming Earnings Releases**: Bank earnings starting Wednesday, and UnitedHealth Group reporting later this week[3].
- **Potential Market Catalysts**: Inflation data, bank earnings, and any updates from the JPMorgan Chase Health Care Conference[3][4].
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Author QP-4
Organization William Corbin
Website -
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