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bull market Often carry with them high expectations of future growth.
Sometimes those expectations of the investing public are too high given the new realities.
I think that’s the case today as we get ready to enter the firehose of news next month that could inject new volatility into the markets.
The exit from that firehouse includes the possibility of immediate market-moving social media posts by President Trump Tariff On countries like Mexico and Canada, and the Federal Reserve meeting in late January where another rate cut is planned Probably not in the cards (Which may draw more market-moving social media posts from said president).
“You can see [hot] “Names like Planter, Tesla, some of the sell-offs that we’re seeing — I think we’re going to see some white knuckle over the next six months,” the Wedbush analyst said. Dan Ives Told me on Yahoo Finance Bidding is being opened Podcast (watch video above; listen below). “Trump headlines risks, tariffs, 10-year Treasury as it moves to 5%, and what it means for the Fed [are all risks] – And so I think we’re going to see some of that [volatility].”
Case in point: Markets fell on Friday after the December jobs report blew past expectations, adding 256,000 jobs compared to estimates of 155,000. S&P 500 (^GSPC) fell 1.5%, and the Dow Jones Industrial Average (^ DJI) and the Nasdaq Composite (^IXIC) each lost 1.6%. 10-year Treasury yield (^TNX) continued a recent rally, as investors braced for a higher-long-rate environment.
Before Friday, the market had already started to experience twists in the areas that were the leaders of the bull market.
Investors were yearning for more from nvidia (NVDA) of CEO Jensen Huang CES on Monday evening. In response, the stock posted its worst day since September 3 on Tuesday.
Nvidia’s stock is down 11% from its intraday high on Jan. 6.
Closes: January 10th at 4:00:01 PM EST
NVDA AMD PLTR
Other highly valued momentum names (known as “momo” trades) such as Palantir (PLTR) and AMD (AMD) has sold off more than 10% in the past month as traders see a higher interest rate backdrop, a stronger U.S. dollar, and have priced in increased headline risks.
The risk-off tone has extended to crypto patches as well.
bitcoin (BTC-USD) is trading at levels not seen since November and is about 15% off its record high.
