Tech stocks are leading the sell-off, with Palantir sliding 3% in premarket trading, extending its three-day decline. Advanced Micro Devices dropped nearly 3% following an HSBC downgrade, reflecting broader semiconductor sector weakness. The S&P 500 and Nasdaq both closed sharply lower on Tuesday, pressured by rising bond yields and strong services sector data.
What Economic Reports Are Traders Watching?
Investors await ADP private payrolls and jobless claims data, along with the Fed’s December meeting minutes, for insights into the central bank’s outlook. The recent ISM services report highlighted rising prices, reinforcing inflation concerns while maintaining some optimism about long-term growth prospects.
What’s the Market Forecast Moving Forward?
Markets are expected to remain volatile as traders evaluate Trump’s potential tariff plans alongside economic data. The possibility of a national economic emergency declaration introduces uncertainty, potentially pressuring sectors with significant global exposure while benefiting domestic-focused industries. Bond yields are likely to stay elevated, reflecting inflation concerns and skepticism over near-term rate cuts. The market outlook will depend heavily on upcoming economic reports and the Fed’s interpretation of inflationary risks.
More Information in our Economic Calendar.