On the first day of trading in the new year on January 2, 2025, traders worked on the trading floor of the New York Stock Exchange (NYSE).
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U.S. stock futures were slightly higher Tuesday night. It came after big tech stocks fell sharply and worries about the path of rate cuts renewed a sell-off on Wall Street.
S&P 500 Index Futures rose 0.1%, while Nasdaq 100 Futures up 0.2%. Futures linked to the Dow Jones Industrial Average Up 38 points, about 0.1%.
Stocks came under pressure during regular trading on Tuesday after all three major stock indexes ended in the red following the release of new data on the health of the U.S. services sector. In December, the Institute for Supply Management’s services index showed activity in the sector accelerating.
Still, the ISM data also showed prices rose this month, raising concerns about stubborn inflation and raising questions about the trajectory of the Federal Reserve’s interest rate cuts this year. According to CME’s Fed Watch ToolFederal funds futures trading data show that there is a 95% chance that the central bank will not cut interest rates at its meeting this month.
Tuesday, Nasdaq Index The largest decline occurred, down nearly 2%. vast market S&P 500 Index and blue chip stocks Dow Jones Industrial Averagefell by more than 1% and about 0.4% respectively.
NVIDIA Technology stocks led the decline during the session, falling more than 6%. Tesla and meta platform fell 4% and nearly 2% respectively.
December ISM data also spurred a surge in bond yields on Tuesday, leading to a rise in benchmark interest rates. 10 year note The intraday high was 4.699%. This is the highest level since April.
Ayako Yoshioka, director of portfolio advisory at Wealth Improvement Group, believes the market’s positive outlook for 2025 remains intact, even if the path to “decent” returns turns out to be more precarious as she expects.
“We’re facing a lot of different countercurrents, whether it’s growth, inflation or policy changes,” Yoshioka said Tuesday on CNBC’s “Closing Bell.” “Those can disrupt markets at times, but I think in the long run Look, they’re generally just buying opportunities.”
Investors are now watching the ADP private payrolls report and jobless claims data. Both are due Wednesday morning. Minutes of the Fed’s December meeting will be released at 2 p.m. ET.
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