Reply To: Traders Market Weekly: Record Highs with Netflix, PCE & Tesla Risk

#70342
Truman
Participant

Morning Market
Dow 37289.41 -71.71 (-0.19%)
Nasdaq 14763.53 -180.82 (-1.21%)
SP 500 4734.42 -31.56 (-0.66%)
10-yr Note -27/32 4.126
NYSE Adv 628 Dec 2068 Vol 161 mln
Nasdaq Adv 1029 Dec 2951 Vol 1.6 bln

Industry Watch
Strong: Consumer Staples
Weak: Information Technology, Communication Services, Consumer Discretionary, Materials, Real Estate, Industrials

Moving the Market
— Rethinking hopeful rate cut view following comments from central bankers
— Rising market rates
— Mega cap losses having an outsized impact

Semiconductor stocks underperform, clipped by rising rates
17-Jan-24 10:30 ET
Dow -71.71 at 37289.41, Nasdaq -180.82 at 14763.53, S&P -31.56 at 4734.42

The market-cap weighted S&P 500 is down 0.6% and the equal weighted S&P 500 is also down 0.6%.

Semiconductor stocks are a pocket of weakness today, pressured by the jump in rates. The PHLX Semiconductor Index (SOX) is down 1.9% with every component showing losses. NVIDIA (NVDA 554.13, -9.66, -1.7%) is trading down nearly 2.0%.

The Vanguard Mega Cap Growth ETF (MGK) is down 1.5% while the market-cap weighted S&P 500 is down 0.8%.

Rising market rates are pressuring the stock market, especially the 2-yr note yield, which is up 13 basis points to 4.35% and the 10-yr note yield is up five basis points to 4.12%.

Lagging mega caps have pinned their respective S&P 500 sectors in negative territory. The communication services (-1.7%), information technology (-1.6%), and consumer discretionary (-1.4%) sectors are all down more than 1.0%. The utilities (+0.2%) and financials (+0.2%) sectors are outperforming.