By 
Benchmark S&P 500 and the Nasdaq Composite fell on Tuesday as yields on Treasury bills rose, dampening sentiments across the market.
At the time of writing, the S&P 500 index was down 0.3%, while the Nasdaq Composite shed 0.7% from the previous close.
The Dow Jones Industrial Average was little changed.
Shares of NVIDIA slipped on Tuesday, paring gains from Monday even as the company unveiled new chips for desktops and laptops that use Blackwell architecture.
Tesla’s stock also shed 3% during the session after Bank of America downgraded the electric vehicle maker due to its higher valuation and risks associated with the strategy.
“This follows a mixed session yesterday which featured a sharp rally across tech, focused on chipmakers, and indifference everywhere else…Taiwan’s Foxconn reported better-than-expected fourth-quarter numbers, and this helped to boost chipmakers, taking NVIDIA and TSMC to all-time closing highs,” David Morrison, senior market analyst at Trade Nation said.
The market was coming off a positive session from Monday after the Washington Post reported that US President-elect Donald Trump may be less aggressive with his tariff plans.
However, hours later, Trump rebuffed the contents of the report.
Cameron Dawson, chief investment officer at NewEdge Wealth told CNBC:
That is our base case, this idea that you’re going into 2025 with such a higher bar that it sets up for some choppy price action when you consider the valuations that we’re starting the year with, where positioning is and where most expectations are.
Positive economic data
The US services sector grew at a faster pace than previously anticipated in December.
This also raised concerns about whether the US Federal Reserve would be able to ease its monetary policy, given the economy remains resilient.
The ISM services sector PMI came in at 54.1. Economists polled by Dow Jones expected a print of 53.4.
A key driver of that beat was the PMI’s price index, which soared 6.2 points to 64.4, signaling there may be more inflation on the horizon, according to CNBC.
Getty Images and Shutterstock surge
Shares of Getty Images soared on Tuesday after the company announced a merger with Shutterstock.
The merger would bring two digital image databases together.
After the merger, the company would keep the name of Getty Images, and would have its CEO Craig Peters as its head.
According to a CNBC report, Shutterstock shareholders have the option to receive $28.85 per share as part of the deal.
Other options include receiving Getty stocks or a mixture of both cash and stocks.
The combined enterprise value of the combined company will be at $3.7 billion.
Shutterstock’s share rose 22% at the time of writing, while those of Getty were up nearly 29% from the previous close.
Inari Medical jumps
Shares of medical device maker, Inari Medical, jumped 22% on Tuesday.
The stock surged after a report by Reuters suggested that the company was in advanced talks with Stryker.
Talks are in advanced stages for Inari Medical to be acquired by Stryker, the report said.
The deal could be announced as early as later this week.
The post S&P 500, Nasdaq slip as Treasury yields rise; NVIDIA and Tesla fall, while Getty and Shutterstock shares soar appeared first on Invezz
