The Dow Jones Industrial Average climbed Monday, outperforming the market, while the Nasdaq Composite slipped as traders continued to sell off major tech stocks that have powered the bull market.
The 30-stock Dow rose 358.67 points, or 0.86%, to close at 42,297.12 as investors rotated into nontech shares such as Caterpillar, JPMorgan and UnitedHealth. Meanwhile, the tech-heavy Nasdaq dropped 0.38% to 19,088.10. The S&P 500 inched up 0.16%, ending at 5,836.22. All three benchmarks are down for the past 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% and nearly 2%, respectively, building upon their losses from last week. Nvidia fell almost 6% during the period, while Palantir lost more than 15%. Other popular tech shares including Apple and Micron were also down in the session.
While tech shares pulled back, the energy sector beat the broader market to add more than 2% as oil prices rose. Health care and materials also advanced.
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, ending the day at 4.79%. Yields surged on Friday following a stronger-than-expected jobs report that cast doubt on further rate cuts by the Federal Reserve.
“With the 10-year yield potentially getting to 5%, I think it’s going to be very hard for the equity market to really gain any meaningful traction here until there’s — at minimum — stability in interest rates,” said Adam Turnquist, chief technical strategist at LPL Financial.
“We don’t think there’s risk of the market going over to bear market territory, but certainly a correction could be in the cards on a short-term basis,” he added.
Investors are hoping the start of the fourth-quarter earnings season will 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.
Source: https://www.cnbc.com/2025/01/12/stock-futures-are-little-changed-ahead-of-key-data-earnings-season-live-updates.html