itstargetnews
That’s The Takeaway from the Morning Brief today, that you can sign up to receive in your inbox every morning along with:
Bull markets they often carry high expectations about future growth.
Sometimes these expectations of the investing masses are too high given the new incoming realities.
I believe that is the case today as we prepare to enter a hose of news over the next month that could inject renewed volatility into the markets.
The emanation from this firehose includes the potential for immediate social media posts from President Trump. rates in countries like Mexico and Canada, and a Federal Reserve meeting at the end of January where there is another rate cut probably not in the cards (which may attract more social media posts that move to market that president).
“You can look at (hot) names like Palantir, Tesla, some of the sales that we’re seeing — I think overall we’re going to see some white knuckles in the next six months,” Wedbush analyst. Dan Ives he told Yahoo Finance Opening offer podcast (see video above; listen below). “The main risk from Trump, rates, the 10-year Treasury as it goes up to 5% and what it means for the Fed (are all risks), and so I think we’ll see some of that (volatility).”
Case in point: Markets tumbled on Friday after the December jobs report beat expectations, with 256,000 jobs added, compared with estimates of 155,000. The S&P 500 (^GSPC) fell 1.5% and the Dow Jones Industrial Average (^DJI) and Nasdaq Composite (^IXIC) each lost 1.6%. The 10-year Treasury yield (^TNX) continued a recent rally as investors braced for a longer-term higher-rate environment.
Prior to Friday, the market had already begun to experience contractions in areas that had been bull market leaders.
Investors were left wanting more from Nvidia (NVDA) CEO Jensen Huang’s CES conference Monday evening. In response, stocks hit their worst day since Sept. 3 on Tuesday.
Nvidia shares are down 11% from their intraday high on Jan. 6.
Closing: January 10th at 4:00:01 PM EST
NVDA AMD PLTR
Other highly rated momentum names (known as “momo” trades) such as Palantir (PLTR) and AMD (AMD) have sold off more than 10% in the past month as traders trade in a backdrop of higher interest rates, a stronger US dollar and increased overall risks.
The risk-off tone has also been extended to the crypto patch.
Bitcoin (BTC-USD) is trading at levels not seen since November and is down about 15% from its all-time highs.
