Market Update Summary
Futures for major indices, including the Nasdaq, S&P 500, and Dow Jones Industrial Average, saw declines of 1.5%, 1%, and 0.6%, respectively. This follows a rough day yesterday, where they dropped 2.3%, 1.7%, and 1.7%, with the Dow losing nearly 800 points.
On Wednesday evening, President Trump signed a new bill that funds the federal government until January 30, effectively ending a record 43-day shutdown. However, traders seem increasingly worried about the delays in releasing economic data that were halted during the shutdown. Current indicators from CME Group’s FedWatch tool suggest there’s now less than a 50% chance that the Federal Reserve will lower interest rates, a decrease from 67% just last Friday.
Moreover, investors are seemingly jittery about the inflated valuations of major tech companies. Stocks of companies like Tesla, Palantir Technologies, Arm Holdings, Appravin, Intel, NVIDIA, AMD, and Broadcom all suffered losses ranging from about 3.5% to 7%, contributing further to the Nasdaq’s downward trend.
Tesla’s shares experienced a further decline of 5% in premarket trading, with similar downward trends indicated for Palantir, Appravin, Intel, NVIDIA, AMD, Arm, and Broadcom.
Meanwhile, Bitcoin dropped below $95,000, marking its lowest price since early May, influenced by the falling tech stocks and a general risk-averse sentiment. Stocks in the cryptocurrency space, including Cryptocurrency Stock Strategies, Robinhood Markets, Coinbase Global, and MARA Holdings, all recorded significant declines following yesterday’s market performance.
The yield on 10-year U.S. Treasuries fell from 4.11% to 4.06%. The U.S. dollar index, which tracks the dollar against various foreign currencies, remained relatively stable at 99.20. Gold futures took a hit as well, decreasing by 1.8% to settle at $4,120 per ounce, while WTI crude oil futures rose by 1.5% to $59.60 for a barrel.
In corporate news, Walmart’s stock dropped by 3% after CEO Doug McMillon announced plans to retire on January 31, 2026, with Walmart U.S. CEO John Furner set to take over.
In other developments, StubHub’s stock plummeted by 20% after the ticket reseller failed to provide guidance for the upcoming quarter and fiscal year 2026. Conversely, shares of Warner Bros. Discovery rose approximately 3% amid reports that Paramount Skydance, Comcast, and Netflix are considering bids for the media entertainment company. Applied Materials saw its shares fall by 6% after CEO Gary Dickerson cautioned during an earnings call that spending on wafer fabrication equipment in China is expected to decline in 2026.
