US stocks closed with mixed results on Monday, driven by investors’ expectations that the Federal Reserve may be done cutting interest rates this year. The Nasdaq fell 0.38% due to sell-offs in tech stocks, which rely heavily on borrowing to fuel growth and are sensitive to higher interest rates.
The S&P 500 index rebounded slightly to close up 0.16%, while the blue-chip Dow added 358 points. However, chip stocks like Nvidia declined after President Joe Biden’s administration proposed new US chip export curbs aimed at thwarting China’s advance in artificial intelligence and protecting national security.
Oil prices rose for a third consecutive session, with Brent crude hitting its highest level since late 2023. This is due to wider US sanctions on Russian oil that could boost prices and shipping costs.
Analysts say if bond yields continue to rise quickly, stocks could remain under pressure. However, some analysts are optimistic about the long-term prospects of equity markets, citing good economic news as implying better-than-expected growth and reduced recession risk.
This week, investors will get their first glimpse of how well companies can hold up against higher rates when six of the largest US banks report beginning Wednesday.
Source: https://eu.usatoday.com/story/money/markets/2025/01/13/us-stocks-fall-ease-rate-cut-forecasts/77668173007