Strong Labor Data Impacts Market, Tech Stocks Dip Despite Nvidia's Positive News:
New labor market data showing significantly more job openings than expected in November has strengthened the U.S. economy's outlook. This positive economic news suggests the Federal Reserve may be less likely to pursue further interest rate cuts. Consequently, the 10-year Treasury yield rose to 4.69%, its highest level since April.
Despite Nvidia CEO Jensen Huang's positive technology updates at CES 2025, Nvidia (NVDA) stock, after initially hitting an all-time high, reversed course and dropped 6.2%. Micron (MU), which saw a 10% surge the previous day, continued its upward trend with a 2.7% gain after being mentioned by Huang.
However, the positive news for Micron wasn't enough to lift the broader tech sector. Other major tech stocks experienced declines, including Tesla (TSLA), Apple (AAPL), Microsoft (MSFT), Alphabet (GOOGL), Amazon (AMZN), Meta Platforms (META), and Broadcom (AVGO). Software companies Palantir (PLTR) and AppLovin (APP), which had strong performances in 2024, also saw significant drops of over 7%.
In the cryptocurrency market, Bitcoin, after briefly surpassing $100,000 for the first time in nearly three weeks, fell back to $97,000. This downturn negatively impacted MicroStrategy (MSTR), a major Bitcoin holder, which plunged 10%, and Coinbase Global (COIN), which fell 8%.
In contrast to the tech and crypto sectors, safe-haven assets and commodities saw gains. Gold futures rose 0.6% to around $2,665 an ounce, and WTI crude oil futures increased by more than 1%.
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