Nasdaq closes lower, S&P 500 up slightly as US yields stay elevated
Mon January 13, 2025 5:14 PM
The resilient economy combined with rising prices continues to push up bond yields and lower hopes for more rate cuts which are today down to just one ¼ point cut this year, perhaps in June, and even that at just 53%. Both the Nasdaq and S&P were in the red all day, all starting well into the red, the Nasdaq down some 330 points in the morning, though rising all day and recovering to only modest losses by close, the S&P even slightly above break-even.
As is usually the case when fleeing from the riskier tech stocks, money flowed into industrials with the Dow enjoying a substantial 3-digit boost. It’s odd that both utilities and tech declined as they usually move in opposite directions. Inflation is expected to continue rising this year which sort of squashes rate cut hopes and there remain concerns that the proposed tariffs will make that even worse. Coming Wednesday is CPI and Beige Book, both of which will be studied closely for clues on future Fed action. Volume for once was not nearly as elevated as in recent sessions, coming in much closer to the 4-week average of 15.7 billion, closing the session at 14.9 billion.
DJ: 41,938.45 -696.75 NAS: 19,161.63
-317.25 S&P: 5,827.04
-91.21 1/10
DJ: 42,297.12 +358.67 NAS: 19,088.10
-73.53 S&P: 5,836.22
+9.18 1/13
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