U.S. stock index futures move little on Tuesday evening, despite growing uncertainty over slower interest rate cuts and sharp losses in Nvidia weighing heavily on Wall Street. Losses in NVIDIA Corporation pressed the broader technology sector, following a spike in Treasury yields driven by economic data pointing to sustained inflationary pressures, furthering the case for a slower pace of monetary easing by the Federal Reserve.
The S&P 500 index dipped 0.1% to 5,950.75 points, the Dow Jones industrial average steadied at 21,358.50 points by 18:16 ET (23:06 GMT), while the Nasdaq index fell slightly to 42,778.0 points.
Nvidia was by far the worst performing major technology stock, dropping 6.2% after CEO Jensen Huang unveiled a slew of new products at the Consumer Electronics Show (CES) 2025 in Las Vegas on Monday. However, some analysts noted that the update did little to spur the company’s near-term outlook, citing that a bulk of the announcement was already priced into the stock.
Other major technology stocks, including Apple Inc and Tesla Inc, also retreated, with the former losing over 1% after being slapped with its second sell rating in three months and the latter slipping 4.1% following a downgrade on concerns over stretched valuations and potential difficulties meeting its lofty AI ambitions.
Meanwhile, Wall Street indexes slid amid concerns over sticky inflation and potential rate jitters, following a spike in Treasury yields driven by stronger-than-expected economic data. The decline in yields prompted investors to flock to bonds and other fixed-income assets, denting stock performance.
Focus now shifts to US data for December, due to be released on Friday, which is expected to provide more clues on interest rates for 2025.