This is The Takeaway from Briff y Bore today, that you can sign up to receive in your inbox every morning along with:
Bull markets often carry with them great expectations for future growth.
Sometimes those expectations from the investment crowd are too high given new realities that are coming in.
I fancy that to be the case today as we prepare to enter a firehose of news over the next month that could inject renewed volatility into markets.
Spinning out of that firehose is the potential for social media jobs moving into the market from President Trump, immediately tariffs on countries like Mexico and Canada, and the Federal Reserve meeting at the end of January where there is another rate cut probably not in the cards (which may attract more market-moving social media posts from that president).
“You could look at (hot) names like Palantir, Tesla, some of the sales that we're seeing – I think roughly we're going to see some white knuckles in the next six months, ” Wedbush analyst Dan Ives tell me on Yahoo Finance Opening Offer podcast (see video above; listen below). “Trump's main risk, tariffs, 10-year Treasury as it goes to 5%, and what it means for the Fed (are all risks) – and so I think we're going to see some of that (volatility).”
Case in point: Markets plunged on Friday after the December jobs report blew past expectations, with 256,000 jobs added, compared with estimates of 155,000. The S&P 500 (^ GSPC) fell by 1.5%, and the Dow Jones Industrial Average (^ DJI) and Nasdaq Composite (^IXIC) lost the same 1.6%. 10-year Treasury yields (^TNX) continued recent gains, as investors braced for a longer-term higher rate environment.
Before Friday, the market had already started to experience twitches in areas that had been the leaders of the bull market.
Investors were left yearning for more by Nvidia (NVDA) Jensen Huang's CEO Monday night's CES keynote. In response, the stock posted its worst day since September 3 on Tuesday.
Nvidia stock has fallen 11% since its intraday high on January 6.
Closes: January 10 at 4:00:01 PM EST
NVDA AMD PLTR
Other valuable momentum names (known as “momo” trades) such as Palantir (PLTR) and AMD (AMD) has sold off more than 10% in the past month as traders priced in a higher interest rate backdrop, a stronger US dollar, and rising headline risks.
The risk-off mood has extended to the crypto patch as well.
Bitcoin (BTC-USD) is trading at levels not seen since November and is down about 15% from its all-time highs.
