Nifty 50 Chart: Where is stock market headed amid continuous sell-off? Check new support, resistance levelshttps://t.co/J5wwVYyWNx
— ET NOW (@ETNOWlive) January 14, 2025
The U.S. stock market is poised for a volatile week as investors react to the latest jobs report and its implications for interest rates. Futures for the Dow Jones, S&P 500, and Nasdaq are all pointing lower in premarket trading. The strong December jobs report, which showed 256,000 jobs added and a dip in the unemployment rate to 4.1%, has dampened hopes for imminent rate cuts from the Federal Reserve.
This has led to a sharp selloff in both stocks and bonds.
Stock Market LIVE: Sensex starts 400 points up after Monday mayhem; Nifty around 23200; HCL Tech tanks 6% after Q3 results#Sensex #Nifty #StockMarket https://t.co/7QuR5SHsKs
— ET NOW (@ETNOWlive) January 14, 2025
The Dow Jones Industrial Average fell 1.6%, or about 700 points, by close on Friday, while the S&P 500 and Nasdaq declined 1.5% and 1.6%, respectively. The 10-year U.S. Treasury note yield shot up to nearly 4.8%.
JUST IN 🚨: Stock Market plunges to Extreme Fear 👻😱 pic.twitter.com/oiOW0IIctv
— Barchart (@Barchart) January 13, 2025
Bank of America economists have revised their outlook, stating that “the Fed cutting cycle is over” and suggesting that further cuts may be limited.
Investors brace for market uncertainty
The robust labor market data has raised concerns that the Fed may not see an immediate need to decrease rates further, especially with lingering inflation concerns.
Tech stocks, which have been driving the bull market, are under particular pressure.
An all-time high 43% of investors think there is a less than 10% chance of a stock market crash occurring in the next 6 months 🚨 pic.twitter.com/NPX6KEGneT
— Barchart (@Barchart) January 13, 2025
Nvidia shares are down 3% in premarket trading after HSBC cut its price target, while Tesla shares are also down about 3% following reports of a major pension fund selling its stake. Apple stock is slipping by about 1% after a report indicated a decline in global iPhone sales and market share in 2024.
Moderna shares fell 17% on Monday after the company cut its 2025 sales guidance by roughly $1 billion. In other news, IAC is spinning off Angi, the home improvement marketplace, with the spinoff expected to close in the second quarter. The retail sector is showing mixed performance, with some big-name retailers projecting better-than-expected fourth quarters while others struggle.
Gina Bolvin, president of Bolvin Wealth Management Group, cautioned investors to “brace themselves for more volatility as the market recalibrates expectations for fewer cuts.”
