Here are the takeaways from today’s Morning Brief. Sign up to receive the following in your inbox each morning:
Bull markets are often accompanied by high expectations for future growth.
The expectations of the investment public may be too high given the emerging realities.
I suspect that’s the case today as we prepare for a huge influx of news over the next month that could bring new volatility to the market.
Coming out of that firehose include market-moving social media posts by President Trump, immediate tariffs on countries like Mexico and Canada, and a Federal Reserve meeting in late January with no further interest rate cuts likely in the cards. This includes the possibility of a meeting (which could further attract the market). -Movement of social media posts from the President).
“If you look at the (hot) stocks like Palantir and Tesla, and the stocks that are on the decline that we’re seeing, broadly speaking, the next six months… I think we’ll just see some white knuckles within.” told me on Yahoo Finance’s Opening Bid Podcast (see video above, listen below). “I think we’re going to see the headline risks of President Trump, the tariffs, the move to 5% on the 10-year Treasury and what that means for the Fed (all risks), so I think we’re going to see some of that (volatility). .”
Case in point: Markets tumbled Friday after the December jobs report came in better than expected, adding 256,000 jobs versus the expected 155,000. The S&P 500 (^GSPC) fell 1.5%, and the Dow Jones Industrial Average (^DJI) and Nasdaq Composite Index (^IXIC) each fell 1.6%. The 10-year Treasury yield (^TNX) has been rising recently as investors brace for a prolonged high interest rate environment.
Before Friday, the market had begun to twitch in areas that were already leading the bull market.
Investors had high hopes for NVDA CEO Jensen Huang’s CES keynote speech on Monday night. As a result, stocks had their worst day since September 3 on Tuesday.
Nvidia stock is down 11% from its intraday high on January 6th.
Ends: January 10th 4:00:01pm (EST)
NVDA AMD PLTR
Other high-value momentum stocks (known as “momo” trades), such as Palantir (PLTR) and AMD (AMD), have gained 10 in the past month as traders priced them on the back of rising interest rates and a stronger US dollar. % or more sold. , the headline risk increases.
The risk-off tone extends to the cryptocurrency patch as well.
Bitcoin (BTC-USD) is trading at levels not seen since November and is down about 15% from its all-time high.
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