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Big-Cap Stocks Shrug Off Uncertainty Due to Falling Bond Yields

Big-Cap Stocks Shrug Off Uncertainty Due to Falling Bond Yields

Published: by Omor IE

Key Points

  • Stocks recovered slightly today, despite tariff-related fears.

  • The FOMC meeting concluded, and the Fed expects interest rate cuts this year.

  • This brought down bond yields, and stocks climbed.

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The stock market opened red initially but recovered quickly as several macro indicators came in slightly hotter than expected. Investors were relieved since this indicates we’re likely not plunging into a recession immediately, as many would have thought.

Moreover, the Federal Reserve held interest rates steady as expected but did hint at two rate 250bps rate cuts this year. In response, treasury yields have fallen ahead of these expected rate cuts. And in turn, stocks have gotten slightly more attractive, especially as many stocks are sitting at double-digit discounts after the correction.

Here’s a market update as of 11:00 A.M (ET) today.

  • The S&P 500 is up 24.6 points, or 0.43%.
  • The Nasdaq Composite is up 100 points, or 0.56%.
  • Dow Jones Industrial Average is up 225.7 points, or 0.54%.
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Big-Cap Stocks Recover Further

The Magnificent Seven stocks are all green today, albeit slightly. There haven’t been any big shocks to the market so far today, and macro data came off positive. Tariff-related uncertainty remains, but buying pressure due to falling treasury yields has outweighed that.

Google (NASDAQ: GOOG) and Apple (NASDAQ: AAPL) were hit by E.U. antitrust actions because both companies were reportedly unfair to competitors. However, both stocks have shrugged off that news and are up today.

Meta Platforms (NASDAQ:META) has gained the most among the Mag 7 stocks as it recovers from a 20% slide from its peak.

Notable Gainers Today

  • ProAssurance Corp (NYSE: PRA): Up 48% as an acquisition was announced from The Doctor Company for $1.3 billion.
  • Aeva Technologies (NASDAQ: AEVA): Up 34% as its Q4 report beats earnings estimates.
  • ARS Pharmaceuticals (NASDAQ: SPRY): Up 28.6% as it beat Q4 2024 earnings estimates and tops revenue expectations.
  • Outset Medical (NASDAQ: OM): Up 29% as reverse split induces volatility.
  • Gambling.com Group (NASDAQ: GAMB): Up 10.6% as 2024 results beat analyst estimates.
  • Five Below (NASDAQ: FIVE): Up over 7% due to strong holiday sales.

Notable Losers Today

  • Akebia Therapeutics (NASDAQ: AKBA): Down 30% as the company raises $50 million at $2. Shares subsequently dropped to $2.
  • F&G Annuities & Life (NYSE: FG):  Down over 10%
  • JOYY Inc (NASDAQ: YY): Down over 9% despite earnings beating estimates as user metrics decline.
  • Baozun Inc (NASDAQ: BZUN): Down 11% as earnings miss, though revenue topped estimates.
  • Accenture (NYSE: ACN): Down 7%  despite beating Q2 estimates as new bookings declined.

The image featured at the top of this post is ©alengo / E+ via Getty Images.

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