U.S. stocks fell on Monday as Treasury yields continued to move higher amid doubts about the Fed’s next move on interest rates.
The Dow Jones Industrial Average ticked up about 0.3% in early trading, while the S&P 500 fell 0.7% and the Nasdaq Composite slumped 1.5%.
Stocks tumbled on Friday to cap off a second consecutive week of losses after a surprisingly strong December jobs report raised concerns among investors that the Federal Reserve may not cut interest rates at all this year.
Big tech companies, including all of the Magnificent Seven, fell on Monday. Chip giant Nvidia (NVDA) tumbled alongside fellow AI darlings Super Micro Computer (SMCI), Micron (MU), and Vistra (VST). Tesla (TSLA), Meta Platforms (META), and Alphabet (GOOG)(GOOGL) each fell more than 2%, while Amazon (AMZN) and Microsoft (MSFT) registered smaller declines.
Apple (AAPL) shares slipped after a report from Counterpoint Research saying iPhone sales fell in the fourth quarter, shrinking the tech giant’s share of the global smartphone market.
Treasury yields were marginally higher, with the 10-year yield at 7.78% after jumping to 4.8% when trading resumed in the early Monday morning.
Cryptocurrencies fell sharply, with the price of Bitcoin (BTCUSD) falling below $91,000 and Ether (ETHUSD) down to about $3,000. MicroStrategy (MSTR), the largest corporate holder of Bitcoin, slid more than 4%.
Oil futures rose to about $77.50 a barrel on Monday morning after surging on Friday. Gold futures slumped about 1% to trade around $2,690 an ounce.
The big economic data this week will be Wednesday’s Consumer Price Index. The U.S. economy has proved surprisingly resilient to higher interest rates over the past couple of years, forcing the Fed to raise rates higher and keep them elevated for longer than many market participants had expected. Last week’s jobs data was yet another sign of the economy’s strength. Economists and Wall Street will be watching Wednesday’s report—as well as Thursday’s wholesale inflation data—closely for any evidence that progress on inflation has stalled or begun to reverse.
Fourth-quarter earnings season will kick off in earnest this week with reports from some of America’s largest banks, including JPMorgan Chase (JPM), Wells Fargo (WFC), and Goldman Sachs (GS), on Wednesday. Chip manufacturing giant Taiwan Semiconductor Manufacturing Co. (TSM) and healthcare giant UnitedHealth Group (UNH) will also report this week.
Apple Stock Slips as iPhone Reportedly Concedes Market Share
34 minutes ago
Apple’s (AAPL) global smartphone market share slipped one percentage point to 18% last year as fourth-quarter iPhone sales dropped 5%, according to Counterpoint Research.
Bloomberg earlier had reported the fourth-quarter slump, reflecting the U.S. firm’s lack of artificial intelligence (AI) features in its phones in China, and a spokesperson at the research firm confirmed the figure.
Apple’s global smartphone sales dropped 2% year-over-year at a time when the overall market grew 4%, as the iPhone 16 series “was met with a mixed response, partly due to a lack of availability of Apple Intelligence at launch,” Counterpoint said.
Still, Counterpoint analyst Ivan Lam said that Apple’s premium products are winning fans.
“iPhone sell-through was down, but consumers are pivoting to Apple’s ultra-high end, helping to offset some of the declines,” Lam said. “In markets like China, we’re seeing sell-through share of Pro series devices ballooning.”
Shares of Apple were down more than 2% early Monday morning, bringing their year-to-date decline to nearly 8%.
Stock Futures Slump as Rate Cut Hopes Fade
1 hr 28 min ago
Futures contracts connected to the Dow Jones Industrial Average were slightly lower in premarket trading on Monday.
S&P 500 futures were down 0.6%.
Nasdaq 100 futures declined 0.9%.
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