Dow Jones Ticks Up during Bearish Stock Market Drop

The stock market was mostly down as the trading started for the week on Monday. The Dow Jones was the only major index to bring in positive numbers with a 0.6% gain.

The S&P 500 fell by 0.15%, with the Nasdaq Composite dropping by 0.8%. The decline is mostly blamed on rising US 10-year Treasury yields. But the market also digested news of a promising jobs report, which showed that there was more growth in December than expected. That should have resulted in stock market gains, but investors are now worried that the news will cause interest rate cuts to be lower than previously expected.

There will be plenty more news for the markets to digest soon, as we have end-of-the-year earnings reports to come in the next few days. There is some expectation that Donald Trump taking up the office of the US President in the last part of the month will bring the stock market up, but any increase there may be based on hype and anticipation rather than actual changes to the economy. However, Trump has vowed to issue a number of executive orders as soon as he takes office, and those could have a tremendous effect ton the economy and the stock market.  

Stock Market Winners and Losers

Nvidia (NVDA) is the most notable loser this week so far with a nearly 3% drop after the Biden administration updates their export regulations for AI products. The new rules are not enforceable for about four months, but the impact is already being felt.

Microsoft (MSFT) and Apple (AAPL) have fallen as well, down 0.95% and 1.3%, respectively. They are likewise impacted by the AI regulations that are rolling out after having been developed in secret and released to the public in a massive document. The full implications of the new rules are not fully understood, but it does not look good for AI products at the moment, and that is a niche that Apple and Microsoft have both invested heavily in.

UnitedHealth Group (UNH) stock shot up recently, gaining 4.40% today and topping the Dow Jones index. The company is under fire for its failure to pay out for medical care and is being forced to repay its insurance holders. However, the company is recovering from those payments and enjoying help from the Biden administration. UnitedHealth and many of its competitors are taking advantage of higher payouts from the government to insurers who offer Medicare Advantage to their subscribers.

ABOUT THE AUTHOR See More

Timothy St. John

Financial Writer - European & US Desks

Timothy St John is a seasoned financial analyst and writer, catering to the dynamic landscapes of the US and European markets. Boasting over a decade of extensive freelance writing experience, he has made significant contributions to reputable platforms such as Yahoo!Finance, business.com: Expert Business Advice, Tips, and Resources - Business.com, and numerous others. Timothy's expertise lies in in-depth research and comprehensive coverage of stock and cryptocurrency movements, coupled with a keen understanding of the economic factors influencing currency dynamics. Timothy majored in English at East Tennessee State University, and you can find him on LinkedIn.

Nvidia Climbs back after AI Market Fears Subside

1 yr ago

Save

Why Stock Markets Remain High after Chinese Tariffs

1 yr ago

Save

The 5% Surge in Nvidia Stock Helps Nasdaq End Up, After the Alphabet Crash

The price of Nvidia stock gained more than 5% today, helping Nasdaq snap a small win, despite the rout in other Tech stocks such as Alphabet

1 yr ago

Save