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Writer's pictureNexxtGen Markets
1 day ago2 min read

Market Highlights: Big Tech Wobbles, Treasury Yields Surge, and Moderna Soars



Big Tech Takes a Hit

Big Tech faced turbulence as rising Treasury yields put pressure on growth stocks:

  • Nvidia fell 6.22% after reaching a record high but remains the largest company by market cap, surpassing Apple. The decline followed the unveiling of its new Blackwell architecture chips for desktops and laptops.

  • Tesla slid 4.8% after a Bank of America downgrade, citing concerns about valuation and strategic risks.

  • Meta Platforms lost 2%, following Mark Zuckerberg’s announcement to end fact-checking on his platforms.

  • Apple and Microsoft dipped over 1%, while Palantir tumbled 7% as ARK Invest sold $15 million worth of shares, leaving the stock 17% below its Christmas high.

Why Treasury Yields Matter

Rising Treasury yields often make bonds more attractive than stocks, particularly for growth-focused sectors like Big Tech, which rely on future earnings. Strong economic data (e.g., job growth or inflation reports) can push yields higher, stoking fears of prolonged Federal Reserve rate hikes and dampening investor sentiment toward stocks.

Food for Thought: Consumer Staples Struggle

Several food companies in the S&P 500 hit fresh 52-week lows:

  • Campbell's Soup (CPB) dropped to its lowest since December 2023, with a yield of 3.85%.

  • General Mills (GIS) hit October 2023 levels, offering a 3.9% yield.

  • Mondelez (MDLZ) fell to its lowest point since October 2022, yielding 3.2%.

  • Kraft Heinz (KHC) slumped to November 2020 prices, boasting a 5.3% yield.

Bird Flu Boosts Moderna

Moderna shares surged over 12% on Tuesday after a rare U.S. human death from bird flu shifted attention to vaccine development. Moderna’s stock has climbed 16.7% since the start of 2025, bouncing back from a 58% decline in 2024. The urgency around tackling bird flu, with over 60 cases now recorded, has bolstered interest in vaccine innovation.

Movers & Shakers

  • Volvo Cars reported record-breaking global sales for 2024, pushing shares higher.

  • UniFirst surged 20.88% after a takeover bid from Cintas at $275 per share in cash.

  • Aurora jumped 29% on news of a partnership with Nvidia and Continental to launch driverless trucks.

  • Inari rose 22% after Stryker announced plans to acquire the medical device maker for $4.9 billion in cash.

What’s on the Radar?

  • ADP Employment Report: Released today at 2:15 PM UK, this offers early insights into private-sector job growth and could sway expectations ahead of Friday's government jobs report.

  • FOMC Meeting Minutes: The Fed’s December meeting minutes drop at 8 PM UK time. With multiple 2025 rate cuts anticipated, investors will scrutinise the Fed’s outlook for clues about timing and pace.

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