Major indexes were down slightly in early trading Wednesday as stocks continued to slump after yesterday’s tech-driven selloff.
The Dow Jones Industrial Average was down 0.4% about half an hour after the opening bell, while the S&P 500 and Nasdaq Composite fell 0.3% and 0.2%, respectively. Stocks fell sharply on Tuesday after surprisingly strong economic data sparked renewed concerns about where interest rates are headed.
The ADP monthly private sector employment report this morning showed that fewer jobs were added in December than economists had anticipated, while weekly jobless claims came in lower than expected. The data are precursors to Friday’s highly anticipated release of the December jobs report. Market participants are watching the data closely for information that could affect the Federal Reserve’s decision-making on interest rates.
Data released Tuesday showed that there were far more job openings in November than economists had expected. That report, along with a hotter-than-expected reading on services sector activity, underscored the continued strength of the U.S. economy and raised concerns about whether the Fed will cut its key rate again.
The yield on 10-year Treasurys, which is correlated with rate expectations, was at 4.70% this morning, up from 4.69% yesterday and trading at its highest point since April.
Large-cap technology stocks, which led Tuesday’s selloff, were mixed in premarket trading. Nvidia (NVDA), Microsoft (MSFT), Amazon (AMZN) and Tesla (TSLA) were gaining ground, while Apple (AAPL), Alphabet (GOOGL) and Meta Platforms (META) fell.
Software maker Palantir (PLTR), which was the S&P 500’s top performer last year, was down 3% this morning, adding to yesterday’s 8% decline.
Shares of MicroStrategy (MSTR), one of the world’s largest holders of bitcoin, and crypto exchange Coinbase Global (COIN) were down 2% as the digital currency continued to slump.
Bitcoin was at $95,200, down from an overnight high of around $97,000 and well below its Monday high of near $103,000.
Gold futures were up 0.5% at $2,680 an ounce, while WTI crude oil futures were holding steady.