Market Momentum Shifts as Tech Stocks Lead the Charge
The S&P 500 is poised to break its five-day losing streak, with a 1% gain in midday trading, driven largely by the surge in tech stocks. Nvidia, a leader in artificial-intelligence technology, rose 4% and was the strongest force pushing the S&P 500 upward. Super Micro Computer, which makes servers used in AI, saw a 6.2% increase.
Big Tech Stocks Rebound
Tesla, which had tumbled 6.1% the previous day, recovered some of its losses with a 4.2% gain. Rival Rivian jumped 21.6% after announcing it delivered more than 14,000 vehicles during the last three months of 2024, exceeding analyst expectations.
Losers of the Day
On the other end of the spectrum, U.S. Steel fell 6.2% after President Joe Biden blocked a nearly $15 billion deal proposed by Japan’s Nippon Steel to buy its Pittsburgh-based rival. Beer, wine, and liquor companies also took a hit, with Molson Coors Beverage falling 2.8% and Brown-Forman, the distillery behind Jack Daniel’s, losing 1.6%, following a warning from U.S. Surgeon General Vivek Murthy about the direct link between alcohol consumption and increased cancer risk.
Economic Uncertainty Ahead
Despite the recent gains, the path ahead for the economy and job market is uncertain. The Federal Reserve’s efforts to bring inflation down to its 2% target have been successful, but traders are now scaling back their expectations for future rate cuts. Inflation remains stubborn, and worries are rising about the impact of tariffs and other policies on the economy.
Global Markets Feel the Pinch
Stock markets overseas have also been affected, with China’s Shanghai index tumbling 1.6% and European stock indexes falling. South Korea’s Kospi, however, jumped 1.8% after the acting president and finance minister promised to stabilize the economy.
Bond Market Holds Steady
In the bond market, Treasury yields held relatively steady after a report showed U.S. manufacturing is not as weak as economists expected. The 10-year Treasury yield edged up to 4.57%, while the two-year Treasury yield held at 4.25%.
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