Nifty 50 Graph: What’s the outlook for the stock market amidst ongoing sell-offs? Discover the latest support and resistance points https://t.co/J5wwVYyWNx
— ET NOW (@ETNOWlive) January 14, 2025
The U.S. stock market is set for a tumultuous week as traders respond to the latest job numbers and their potential impact on interest rates. The futures for the Dow Jones, S&P 500, and Nasdaq are all indicating a downturn in premarket activity. The strong jobs report for December, which revealed the addition of 256,000 jobs and a drop in the unemployment rate to 4.1%, has diminished expectations for immediate rate reductions by the Federal Reserve.
This scenario has triggered a significant sell-off in both equities and bonds.
Stock Market LIVE: Sensex opens 400 points higher after Monday chaos; Nifty near 23200; HCL Tech slides 6% following Q3 results #Sensex #Nifty #StockMarket https://t.co/7QuR5SHsKs
— ET NOW (@ETNOWlive) January 14, 2025
On Friday, the Dow Jones Industrial Average dropped 1.6%, approximately 700 points, by the end of trading, while the S&P 500 and Nasdaq fell by 1.5% and 1.6%, respectively. The yield on the 10-year U.S. Treasury note surged to nearly 4.8%.
BREAKING ?: Stock Market dives into Extreme Fear ?? pic.twitter.com/oiOW0IIctv
— Barchart (@Barchart) January 13, 2025
Bank of America economists have adjusted their forecast, insisting that “the Fed’s cutting cycle has concluded” and suggesting that any further reductions could be minimal.
Investors prepare for market unpredictability
The strong labor statistics have sparked worries that the Fed may not feel an urgent need to lower rates further, particularly with persistent inflation anxieties lingering.
Technology shares, which have been influential in the bull market, are facing intensified pressure.
A record 43% of investors believe there is less than a 10% chance of a market crash taking place in the next 6 months ? pic.twitter.com/NPX6KEGneT
— Barchart (@Barchart) January 13, 2025
Nvidia’s stock fell by 3% in premarket trading following HSBC’s downgrade of its price target, whereas Tesla’s shares also decreased by approximately 3% amid reports of a significant pension fund divesting its shares. Apple’s stock has dipped around 1%, influenced by news of a downturn in global iPhone sales and a decline in market share anticipated for 2024.
On Monday, Moderna’s shares plummeted 17% after the company reduced its sales forecast for 2025 by nearly $1 billion. Additionally, IAC is planning to separate Angi, the home improvement service, with the spinoff expected to finalize in the second quarter. The retail sector is displaying varied performance, as some prominent retailers anticipate stronger-than-expected fourth quarters while others face challenges.
Gina Bolvin, president of Bolvin Wealth Management Group, warned investors to “prepare for increased volatility as the market adjusts its expectations for fewer interest rate cuts.”
