{"id":16259,"date":"2025-01-08T07:12:04","date_gmt":"2025-01-08T07:12:04","guid":{"rendered":"https:\/\/www.vtmarkets.com\/?p=16259"},"modified":"2025-01-08T07:12:04","modified_gmt":"2025-01-08T07:12:04","slug":"sp500-declines-as-tech-stocks-weigh-on-markets","status":"publish","type":"post","link":"https:\/\/www.vtmarkets.com\/en-asia\/analysis\/sp500-declines-as-tech-stocks-weigh-on-markets\/","title":{"rendered":"SP500 Declines as Tech Stocks Weigh on Markets"},"content":{"rendered":"\n<figure class=\"wp-block-image size-large\"><img loading=\"lazy\" decoding=\"async\" width=\"1024\" height=\"559\" src=\"https:\/\/www.vtmarkets.com\/en-asia\/wp-content\/uploads\/sites\/27\/2026\/03\/download-1-1024x559.png\" alt=\"\" class=\"wp-image-16614\"\/><\/figure>\n\n\n\n<h2 class=\"wp-block-heading has-medium-font-size\">Key Points<\/h2>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>S&amp;P 500 (SP500):<\/strong> Declined <strong>1.04% to 5,924.53<\/strong>, as tech underperformed while energy and health care edged higher.<\/li>\n\n\n\n<li>Tech stocks, including Nvidia and Tesla, saw significant declines, while energy and health care sectors gained.<\/li>\n<\/ul>\n\n\n\n<hr class=\"wp-block-separator has-alpha-channel-opacity is-style-dots\"\/>\n\n\n\n<p class=\"has-medium-font-size\">US equity benchmarks closed lower Tuesday, with technology stocks dragging the <strong>S&amp;P 500 (SP500)<\/strong> down <strong>1.04% to 5,924.53<\/strong>, with technology being the worst-performing sector.<\/p>\n\n\n\n<figure class=\"wp-block-embed is-type-rich is-provider-twitter wp-block-embed-twitter\"><div class=\"wp-block-embed__wrapper\">\n<blockquote class=\"twitter-tweet\" data-width=\"500\" data-dnt=\"true\"><p lang=\"en\" dir=\"ltr\">Bank of America downgrades Tesla stock, raises price target saying &#39;execution risk is high&#39; <a href=\"https:\/\/t.co\/k3P3Ude17i\">https:\/\/t.co\/k3P3Ude17i<\/a> by <a href=\"https:\/\/twitter.com\/Pras_S?ref_src=twsrc%5Etfw\">@Pras_S<\/a><\/p>&mdash; Yahoo Finance (@YahooFinance) <a href=\"https:\/\/twitter.com\/YahooFinance\/status\/1876733662944698767?ref_src=twsrc%5Etfw\">January 7, 2025<\/a><\/blockquote><script async src=\"https:\/\/platform.twitter.com\/widgets.js\" charset=\"utf-8\"><\/script>\n<\/div><\/figure>\n\n\n\n<figure class=\"wp-block-image size-large is-resized\"><img decoding=\"async\" src=\"https:\/\/www.vtmarkets.com\/en-asia\/wp-content\/uploads\/sites\/27\/2026\/03\/image-8-1024x446.jpg\" alt=\"\" class=\"wp-image-16267\" style=\"width:1450px;height:auto\"\/><\/figure>\n\n\n\n<p class=\"has-text-align-center\"><em>Picture: S&amp;P 500 consolidates near 5924 after testing 5890 support, with bearish momentum showing signs of easing, as seen on the <a href=\"https:\/\/vtmarketsapp.onelink.me\/CD7D\/240525WA\" target=\"_blank\" rel=\"noopener\" title=\"\">VT Markets app<\/a>.<\/em><\/p>\n\n\n\n<p>The chart displays a bearish movement, with the S&amp;P 500 index closing lower than its opening price and registering a daily decline of <strong>1.04%.<\/strong><\/p>\n\n\n\n<p>The price remained below key short-term moving averages, while the MACD indicator confirmed sustained selling pressure. A breach of <strong>5907 <\/strong>could lead to further declines, with <strong>5900 <\/strong>being the next critical level to watch.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">Firm Blow from Treasury Yield<\/h3>\n\n\n\n<p>The tech sector&#8217;s dip came with a swing from the <strong><a href=\"https:\/\/t.co\/6fWDcg57py\" target=\"_blank\" rel=\"noopener\" title=\"\">10-year Treasury yield<\/a><\/strong>, which climbed <strong>7.1 basis points to 4.69%.<\/strong><\/p>\n\n\n\n<p>With faster-than-expected growth seen in the US services sector in December, market participants are expecting encouraging improvements through the fog of mixed economic signals. <a href=\"https:\/\/t.co\/K8v2RdpPI1\" target=\"_blank\" rel=\"noopener\" title=\"\">Job openings<\/a> rising to <strong>8.098 <\/strong>million in November were also a prime factor to the sector&#8217;s movements.<\/p>\n\n\n\n<h2 class=\"wp-block-heading has-medium-font-size\">Profit-Taking Following 2024 Rallies<\/h2>\n\n\n\n<p>The technology sector saw massive gains in 2024, driven by enthusiasm over AI and other emerging technologies. Stocks like <strong>Nvidia<\/strong>, <strong><a href=\"https:\/\/t.co\/RzQanP4hm1\" target=\"_blank\" rel=\"noopener\" title=\"\">Microsoft<\/a><\/strong>, and <strong>Tesla<\/strong> were among the top performers last year, leaving them vulnerable to profit-taking as investors reassess valuations.<\/p>\n\n\n\n<p>The selloff in major tech stocks reflects caution among investors as rising Treasury yields and strong economic data temper expectations of near-term Fed rate cuts. <\/p>\n\n\n\n<p>While energy and health care sectors provided some support, the focus remains on upcoming data releases to gauge the trajectory of the US economy and monetary policy.<\/p>\n\n\n\n<p><strong><a href=\"https:\/\/www.vtmarkets.com\/trade-now\/\">Create your live VT Markets account<\/a>&nbsp;and&nbsp;<a href=\"https:\/\/myaccount.vtmarkets.com\/login\">start trading<\/a>&nbsp;now.<\/strong><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Tech stocks drop as rising Treasury yields, strong U.S. data, and profit-taking weigh on S&amp;P 500 performance. &#8211; vtmarkets.com <\/p>\n","protected":false},"author":2,"featured_media":16614,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":true,"footnotes":""},"categories":[31],"tags":[11,7],"class_list":["post-16259","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-analysis","tag-indices","tag-stocks"],"acf":{"acf_article_selection_author":""},"aioseo_notices":[],"_links":{"self":[{"href":"https:\/\/www.vtmarkets.com\/en-asia\/wp-json\/wp\/v2\/posts\/16259","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.vtmarkets.com\/en-asia\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.vtmarkets.com\/en-asia\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.vtmarkets.com\/en-asia\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.vtmarkets.com\/en-asia\/wp-json\/wp\/v2\/comments?post=16259"}],"version-history":[{"count":0,"href":"https:\/\/www.vtmarkets.com\/en-asia\/wp-json\/wp\/v2\/posts\/16259\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.vtmarkets.com\/en-asia\/wp-json\/wp\/v2\/media\/16614"}],"wp:attachment":[{"href":"https:\/\/www.vtmarkets.com\/en-asia\/wp-json\/wp\/v2\/media?parent=16259"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.vtmarkets.com\/en-asia\/wp-json\/wp\/v2\/categories?post=16259"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.vtmarkets.com\/en-asia\/wp-json\/wp\/v2\/tags?post=16259"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}