Stocks Fall After Strong Economic Data Spark Interest Rate Fears

Every weekday, the CNBC Investing Club with Jim Cramer releases the Homestretch — an actionable afternoon update, just in time for the last hour of trading on Wall Street. Market update: Stocks are lower on Tuesday afternoon, but off their worst levels of the session. The market started the day on a higher note, buoyed by strength in the semiconductor sector and shrugging off a rare downgrade to sell of Apple. But things turned lower right at 10 a.m.

ET when interest rates soared after a string of better-than-expected economic data. What the market keyed on was the higher-than-expected JOLTS job openings report (which measures demand for workers) and the stronger-than-expected ISM Services Index, especially on prices paid. The data caught the market by surprise because economic releases had been surprising to the downside, as indicated by the Citi U.S. Economic Surprise Index. For the moment, we may be in good economic news is bad news for stocks. The 10-year yield spiked more than 7 basis points to around 4.69% as traders pushed out their bets for interest rate cuts this year and the market digested a $39 billion auction of 10-year bonds. Sector moves: Tuesday is a little contrary to some of the recent market trends. The energy sector is leading the market thanks to oil notching slight gains. Healthcare, which had been under pressure over the past three months, is having a strong day despite no real industry catalyst. All five healthcare stocks in the portfolio — Abbott Labs, Bristol-Myers Squibb, Danaher, GE Healthcare, and Eli Lilly — are up so far in 2025 after disappointing ends to 2024. On the other side, many red hot momentum stocks like MicroStrategy, Applovin, and Palantir gave back recent gains. Nvidia reversed after briefly hitting an all-time high, but we don't see the decline as a sign of disappointment in CEO Jensen Huang's keynote at CES or negativity around physical AI

United Kingdom United Kingdom Latest News, United Kingdom United Kingdom Headlines

Similar News:You can also read news stories similar to this one that we have collected from other news sources.

European stocks pull back; autos stocks fall over 1%European markets were lower on Friday after a rocky start to 2025 for stocks around the world.
Source: CNBC - 🏆 12. / 72 Read more »

GMI Forecast Remains Strong, US Stocks LagThe Global Market Index (GMI) maintains its high return outlook for the second consecutive month, driven by strong performance across major asset classes except US equities.
Source: Investingcom - 🏆 450. / 53 Read more »

AI Stocks Surge on Strong Earnings and InvestmentNvidia's AI chips continue to drive strong performance, with record revenue reported by Foxconn. Semiconductor stocks rise as AI investment remains robust. Meanwhile, the Dow Jones Industrial Average dips after earlier gains fueled by potential tariff softening.
Source: NBCLA - 🏆 319. / 59 Read more »

Financial Stocks Set for a Strong YearFidelity's Denise Chisholm predicts a positive year for financial stocks due to attractive valuations, dividend payouts, and improving earnings growth. She highlights the sector's potential for outperformance amidst current market conditions.
Source: CNBC - 🏆 12. / 72 Read more »

Deutsche Bank Predicts Strong 2025 for StocksDeutsche Bank strategist Henry Allen anticipates another strong year for the stock market in 2025, citing favorable economic conditions and a lack of significant looming risks.
Source: CNBC - 🏆 12. / 72 Read more »

Stocks End 2024 on a Down Note, but Year Ends StrongUS stocks closed the final trading day of 2024 with slight losses, but the major indexes still posted significant gains for the year. The news also includes updates on natural gas prices surging due to predicted colder weather and a reported Chinese hacking attempt on the US Treasury.
Source: NBCPhiladelphia - 🏆 569. / 51 Read more »