Traders work on the trading floor of the New York Stock Exchange on January 10, 2025 in New York City.
New York Stock Exchange
This report comes from today’s CNBC Daily Open, our international markets newsletter. CNBC Daily Open keeps investors updated on everything they need to know, no matter where they are. Like what you see? You can subscribe here.
What you need to know today
Nasdaq still lags other major indexes
this S&P 500 Index and Dow Jones Industrial Average rose on Tuesday, but Nasdaq Index retreat, make it Poor performance the next day. Asia Pacific market Most of the losses Wednesday. Japanese Nikkei 225 Index Down about 0.1% Reuters Tankan survey January saw business confidence rising in the country.
South Korean President Yoon was arrested
South Korean President Yoon Seok-yeol was arrested on Wednesday Conducted by the country’s Office for the Investigation of Corruption of Senior Officials. The arrest was a first for a sitting South Korean leader and the second attempt by the chief information officer after his first attempt was thwarted by presidential security personnel. South Korean stock markets reacted mutedly to the news.
The impact of the global bond sell-off
one Global bond market sell-off is acceleratingAnalysts told CNBC this was triggered by the prospect of fewer U.S. interest rate cuts and rising government debt. Higher yields would increase borrowing costs for governments and businesses, potentially forcing higher taxes and lowering corporate profits. Rising U.S. yields are also weighing on other currencies and making it harder for global central banks to cut interest rates.
Meta lays off employees, Microsoft freezes hiring
Yuan Will Lay off approximately 5% of the lowest performing employeesCNBC confirmed on Tuesday. Chief Executive Mark Zuckerberg informed employees of the decision in a memo posted on an internal company forum on Tuesday. respectively, Microsoft plan Suspension of recruitment for some consulting businesses According to an internal memo, in the United States.
SEC sues Musk over Twitter stock issues
The U.S. Securities and Exchange Commission (SEC) filed a litigation Accusations leveled at Elon Musk on Tuesday against the billionaire guilty of securities fraud In 2022, by not disclosing that he had accumulated an active stake in Twitter, this secrecy allowed him to purchase shares at an “artificially low price.”
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bottom line
The market’s technical rout isn’t over yet.
The Nasdaq fell 0.23%, underperforming the S&P 500 and the Dow Jones Industrial Average (up 0.11% and 0.52%, respectively) for the second consecutive day. All seven major stocks fell, with Meta, Tesla and NVIDIA The largest losses were recorded.
The decline in tech stocks was accompanied by news of layoffs and hiring freezes, adding to the industry’s woes.
In order to reduce expenses, Microsoft will suspend hiring in some consulting departments, reduce travel expenses and cut marketing expenses, according to an internal memo.
Meta, meanwhile, announced in an internal memo on Tuesday that it would “retire approximately 5% of its lowest-performing employees.” (Just like one “opts out” of fact-checking or “in” free speech, I suppose.) Zuckerberg also warned employees that 2025 would be an “intense year.”
Of course, Zuckerberg’s warning was directed at Meta, but it could also apply to tech companies that are trying to invest heavily in artificial intelligence but don’t necessarily have the revenue to justify such high spending.
However, there are signs of optimism about the business environment this year as we enter fourth-quarter earnings season.
“We do think earnings are going to be stronger,” said Jay Hatfield, founder of Infrastructure Capital Advisors.
“The economy is strong in the fourth quarter. Typically, companies know by then if they have a problem, they’re probably going to be very optimistic about the future because the Trump administration is pro-business. So we think most CEOs are optimistic about 2025 The forecast for the year is very optimistic.
Perhaps optimistic CEOs are leading other sectors, as Tuesday’s move away from technology and toward utilities, financials and materials suggested.
Whether this industry rotation continues will depend on the Consumer Price Index, which is set to fall later today.
—CNBC’s Lisa Kailai Han, Hakyung Kim and Brian Evans contributed to this report.
