Tech led a slide in US stocks on Monday, while the dollar and bond yields climbed amid fading hopes for interest rate cuts ahead of this week’s key consumer inflation report.
The S&P 500 (^GSPC) sank 0.4%, while the Nasdaq Composite (^IXIC) tumbled about 1%. But the Dow Jones Industrial Average (^DJI) which includes fewer tech stocks, rose 0.5%.
Stocks are shaping up for another rough session after Friday’s plunge, which wiped out all year-to-date gains for Wall Street’s major gauges. A hot December jobs report rattled markets, spurring concern that signs of strength in the economy will encourage the Federal Reserve to keep rates higher for longer.
DJI – Free Realtime Quote • USD
As of 10:52:38 AM EST. Market Open.
The 10-year Treasury yield (^TNX) added to recent gains to touch a 14-month high, trading not far off 4.8% as US bonds sold off. Meanwhile, the dollar (DX-Y.NYB) surged to a two-year high against major currency peers, with the UK pound (GBPUSD=X), in particular, coming under pressure.
As of Monday, traders are betting there will be no rate cut until at least September, per the CME FedWatch tool, and that the Fed will lower borrowing costs by just 30 basis points in the whole of 2025.
That has intensified the spotlight on the Consumer Price Index reading for December, due on Wednesday, given one big concern for markets is that inflation won’t cool to the central bank’s 2% target.
Adding to the gloom, oil prices rose to their highest levels in five months before paring gains after the US imposed tougher sanctions on Russia’s crude industry, threatening supply to China and India. Brent (BZ=F) briefly climbed more than 2% to trade above $81 a barrel, while West Texas Intermediate (CL=F) changed hands near $78.
Shares of Nvidia (NVDA), Apple (AAPL), and Tesla (TSLA) slid as all the “Magnificent Seven” tech megacaps lost ground in the market turmoil. Europe’s largest pension fund revealed that it sold its entire stake in Tesla over CEO Elon Musk’s pay package.
Elsewhere in corporates, Moderna (MRNA) stock plunged over 22% after the biotech giant cut its 2025 sales forecast by $1 billion amid soft demand for vaccines.
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Nvidia, Tesla, Meta fall as ‘Mag 7’ stocks lead tech sell-off
‘Magnificent 7’ stocks led the tech sell-off on Monday as investor optimism over Federal Reserve rate cuts this year began to fade ahead of a highly anticipated inflation print this week.
AI chip giant Nvidia (NVDA) fell roughly 3,% while EV maker Tesla (TSLA) retreated around 1%. Social media platform Meta (META) and iPhone maker Apple (AAPL) both shed more than 2%. Microsoft (MSFT) and Alphabet (GOOG, GOOGL) posted smaller drops.
Tech stocks extended their declines from Friday, which came as a hotter-than-expected jobs report dashed hopes that the Fed would cut rates at least two times this year. Investors expect policymakers to shift any easing to the fall at the earliest.
Growth stocks lost ground as the yield on the 10-year Treasury (^TNX) ticked higher and the US Dollar Index (DX-Y.NYB) rose to its highest level since 2022.
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UnitedHealth stock rallies, helps lift Dow into positive territory
Shares of UnitedHealth (UNH) rose nearly 4% on Monday morning, helping lift the Dow Jones Industrial Average (^DJI) into positive territory in early trading.
UnitedHealth, along with other insurers like Humana (HUM), rose after Medicare released a proposal that would allow for bigger-than-expected payments for insurance companies in 2026.
Shares of CVS Health (CVS) also rallied.
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Moderna stock sinks 23% after company slashes sales forecast
Moderna (MRNA) shares sank 23% at the open on Monday after the biotech giant lowered its 2025 sales guidance by $1 billion because of weak demand for its COVID-19 vaccines and a slower adoption of its new respiratory syncytial virus (RSV) shot.
The company said it expects revenue in 2025 to come in anywhere between $1.5 billion and $2.5 billion after hitting as much as $3.1 billion last year.
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Stocks slide as hopes of rate cuts fade
Stocks opened lower on Monday, with tech leading the losses as optimism over interest rate cuts this year continued to fade and bond yields rose.
The S&P 500 (^GSPC) sank 0.8%, while the Nasdaq Composite (^IXIC) dropped 1.3%. The Dow Jones Industrial Average (^DJI) fell about 0.1%.
Stocks continued their sell-off from Friday’s plunge, which wiped out all year-to-date gains for the major averages.
A hot December jobs report spooked the markets, as investors faced the possibility that the Federal Reserve will make just two rate cuts this year.
Among Monday’s laggards, shares of Nvidia (NVDA) and Tesla (TSLA) slid more than 3% and 2%, respectively, as the “Magnificent Seven” group lost ground in the market sell-off.
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Good morning. Here’s what’s happening today.
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Another risk-off morning
Investors awake to markets continuing their post-red-hot jobs report tantrum.
CME – Delayed Quote • USD
As of 10:42:38 AM EST. Market Open.
The rise in yields and now the rise in energy prices remain in focus. Both of these things happening at the same time is the worst possible scenario for the bulls. At the time of this writing, premarket weakness is being seen in top momentum names such as Tesla (TSLA) and Nvidia (NVDA).
Important point this morning by the Goldman Sachs team:
“The move in rates is also now tightening financial conditions such that it may weigh on growth and risk assets. Positions that benefit from lower US yields now look more attractive, especially for portfolios that already embrace the US growth theme.”
