Adam Glanzman/Getty Images/Bloomberg
The Key Takeaways
- The S&P 500 fell 1.1% on Tuesday, Jan. 7, as U.S. manufacturing data reinvigorated concerns about inflation and the interest rate outlook.
- Morgan Stanley analysts raised valuation concerns as the reason for Palantir’s second consecutive session of declines.
- Moderna shares surged as reports of the country's first bird-flu fatality sparked interest in the biotech firm's experimental H5N1 vaccine.
Major U.S. equities lost ground, as the latest Purchasing Managers’ Index revealed an expansion in the Manufacturing sector but also an increase in other sectors. “prices paid” The index for December.
Indicators of price pressures in the last month of 2024 may encourage Federal Reserve policymakers to take a more cautious approach as they consider the timing and extent of any additional rate reductions this year.
The S&P 500 slipped 1.1%. The Nasdaq fell by 1.9% due to a poor performance in the tech sector, and the Dow closed the session with a 0.4% decline.
The heaviest losses in the S&P 500 hit shares of big data analytics software provider Palantir Technologies (PLTR), which dropped 7.8%. The decline on Tuesday extended losses from the previous session, after Morgan Stanley expressed its concern about the stock valuation in light of the huge 2024 rise that Palantir experienced last year and made it the best performer within the benchmark index.
Nvidia shares (NVDA), a semiconductor company that specializes in artificial intelligence, plunged by 6.2% Tuesday. Nvidia CEO Jensen Huang gave a keynote speech at the CES 2017 conference on Monday. While Huang listed notable achievements, such as new game chips and a collaboration with Toyota, analysts cited a shortage of information about Rubin. Rubin is the next generation graphics processor units (GPUs) that are being developed by the chipmaker to succeed the Blackwell Platform.
Super Micro Computer’s (SMCI), shares dropped 5.7%. This reversed a part of the gains made in the session before, as analysts speculated Nvidia’s keynote speech could have been a catalyst. Shares of Super Micro Computer (SMCI) have been volatile for a while now. In fact, the company’s shares saw major swings during 2024 in response to corporate governance and accounting issues.
Moderna (MRNA) shares logged the S&P 500’s best performance on Tuesday, soaring 11.7%. Centers for Disease Control and Prevention announced Monday that a U.S. resident died of severe avian Influenza A (H5N1) infection, making it the nation’s first bird flu death. Moderna has developed an experimental H5N1 vaccine.
Analysts at Truist reduced their price targets on HCA Holdings but kept their target. Shares gained 3.8%. “buy” rating. Analyst team notes that, while a cost-conscious government dynamic could impact healthcare service companies, demographics, trends towards value-based health care and a robust core demand should be able to provide favourable conditions for the sector.
The solar power industry is the latest to reap benefits from the expectations of a surge in AI-driven energy demand. Invesco’s Solar ETF (TAN), which tracks solar power stocks, was up 3% Tuesday. The shares of First Solar, a panel maker (FSLR), climbed 3.4%. Enphase Energy’s (ENPH) stock soared 3% after the company announced its microinverters were selected to power a solar installation at a Belgian radioactive waste disposal facility.
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