Tuesday’s Trading Day Sees Stocks Fall Amid Treasury Yields Increase
As investors await key data releases, U.S. stocks turned lower in early Tuesday trading, while Treasury yields jumped. This shift comes as the market looks to the first of a series of job market data releases that could test the market’s early January rally.
Job Market Data Release: JOLTS Report
The Labor Department released its Job Openings and Labor Turnover Survey (JOLTS) report for November, showing a significant increase in unfilled jobs. The report indicates solid momentum into the final weeks of the year, with 8.01 million unfilled positions. This number is up more than 400,000 from October’s reading and surpasses the Street’s forecast of 7.84 million.
ISM Service Sector Activity Report
The Institute for Supply Management (ISM) posted its final reading of service sector activity for December. The report showed a stronger-than-expected increase in ‘price paid’ by suppliers since February 2023, indicating a solid gain in the service sector.
Market Reaction
In response to these data releases, benchmark 10-year Treasury note yields rose by 4 basis points to 4.679%. Meanwhile, the S&P 500 gave back earlier gains, falling 15 points or 0.25% on the session.
Pre-Market Movers: Micron Technology
Micron Technology (MU) shares are notable pre-market movers after Nvidia CEO Jensen Huang named-dropped the memory chip maker as a key supplier to its new line of AI-powered gaming GPUs. Huang’s keynote address at CES 2025 in Las Vegas also noted that Micron will provide memory for its new AI-powered personal computer, expected to launch later in the spring.
Micron Shares: Strong Pre-Market Trading
Micron shares were last marked 3.8% higher in premarket trading, indicating an opening bell price of $103.05 each. This strong performance is likely due to the company’s growing presence in the AI-powered gaming and personal computer markets.
Stock Market Today: Monday’s Gains
On Monday, stocks ended firmly higher, with megacap tech names and a fresh record high for Nvidia (NVDA) pacing gains and lifting the S&P 500 to a 0.55% advance by the close of trading. The Nasdaq jumped 1.24% as the tech sector continues to dominate investor sentiment.
Nvidia CEO Jensen Huang’s Keynote Address
Nvidia CEO Jensen Huang unveiled plans for a raft of new AI efforts during his keynote address at CES in Las Vegas last night. Huang announced new gaming chips, an AI-powered laptop, and plans to infuse the technology across various industrial segments. Shares in Nvidia were last marked 1.6% higher in premarket trading.
Labor Market Data Release: November Job Openings
The Labor Department will release its November job openings report later this morning, marking the first of four data releases over the week that conclude with Friday’s December nonfarm-payrolls update. Economists are expecting a modest uptick in unfilled positions over the month, with a headline tally of 7.73 million.
Quits Rate: Labor-Market Momentum
However, economists will focus on the so-called quits rate to determine labor-market momentum into the final weeks of last year. The quits rate is an indicator of worker confidence and job satisfaction, which can impact the overall labor market.
Treasury Yields: Increase Amid Data Releases
In response to these data releases, Treasury yields increased. This shift could have implications for interest rates and inflation expectations, potentially impacting the stock market in the coming weeks.
Overseas Markets: Mixed Performance
In overseas markets, the regional Stoxx 600 benchmark nudged 0.15% higher in Frankfurt, while Britain’s FTSE 100 slipped 0.21% in midday London trading. Overnight in Asia, Japan’s Nikkei 225 followed last night’s rally on Wall Street with a solid 1.97% gain.
Conclusion
The stock market is expected to remain volatile as investors await key data releases and respond to changing economic indicators. As the market navigates these shifts, it’s essential to stay informed and adapt investment strategies accordingly.
