Ahead of today’s market session, U.S. stock futures are showing signs of weakness following a significant tech sector selloff yesterday. Several developments are shaping market sentiment, including news of the national day of mourning for former President Jimmy Carter, rising Moderna stock due to optimism around its experimental bird flu vaccine, a downturn in Bitcoin and crypto-related assets, and a decline in Palantir Technologies amid concerns over its valuation. Here’s what investors should keep an eye on as the trading day begins.
1. Tech Selloff Weighs on U.S. Stock Futures
U.S. stock futures are trading lower this morning after a steep selloff in the tech sector. The Nasdaq is down by 0.4%, continuing yesterday’s loss of 1.9%. Meanwhile, futures for the S&P 500 and the Dow Jones Industrial Average are also showing slight declines. Treasury yields are edging higher, with the 10-year note surpassing 4.7%. Oil futures are experiencing gains, while gold futures are seeing modest declines.
2. Markets to Close Thursday for Jimmy Carter’s Funeral
U.S. stock markets and federal agencies will be closed this Thursday in observance of a national day of mourning for former President Jimmy Carter, who passed away on December 29 at the age of 100. Bond markets will close early at 2 p.m. ET. As a result, the weekly initial jobless claims report will be released today, along with the Census Bureau’s wholesale inventories report, typically scheduled for Thursday.
3. Moderna Stock Jumps on Bird Flu Vaccine News
Shares of Moderna (MRNA) are up by 1.4% in premarket trading, following a 12% surge yesterday. The boost in stock value comes amid growing optimism surrounding the company’s experimental H5N1 bird-flu vaccine, especially after the first U.S. death linked to the disease was reported. Moderna has faced a challenging year, with sales declining after COVID-19 vaccine demand waned. Despite the recent positive news, the stock has fallen by roughly 50% over the last 12 months.
4. Bitcoin Drops After Strong Labor Data Raises Rate-Cut Uncertainty
Bitcoin (BTCUSD) is down by approximately 2%, trading at just under $95,000, following a stronger-than-expected job openings report that diminished hopes for further interest rate cuts from the Federal Reserve. The digital currency had briefly crossed the $100,000 mark on Monday, but it has since retreated from its high of nearly $103,000 on Tuesday. Shares of MicroStrategy (MSTR), a significant Bitcoin buyer, are down 3% in premarket trading after a 10% drop in the prior session. Other crypto-related stocks, such as Coinbase Global (COIN) and Marathon Holdings (MARA), are also showing losses of 2% and 3%, respectively.
5. Palantir Shares Slide on Valuation Concerns
Shares of Palantir Technologies (PLTR) are down 3% in premarket trading, following a nearly 8% drop in the prior session. The artificial intelligence-focused software company is facing increased scrutiny over its high valuation, particularly after an impressive run in 2024 that saw the stock become the top performer in the S&P 500. Morgan Stanley analysts have raised concerns about the company’s price-to-earnings ratio, which has led to a selloff. Palantir’s stock has lost more than 12% over the last two trading days, signaling investor caution.
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