Stocks Slide on Weak Economic Data as Bonds Climb: Markets Wrap

(Bloomberg) — Stocks got hit after weaker-than-expected economic data raised concern about the outlook for Corporate America amid a surge in consumers’ long-run inflation views to the highest since 1995.

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From consumer sentiment to housing and services, Friday’s readings left investors questioning growth prospects at a time when the Federal Reserve is signaling no rush to cut rates. Economically sensitive corners of the market bore the brunt of the selling. The S&P 500 erased this week’s advance. Despite the rise in inflation expectations, bond yields remained lower.

“Disappointing releases,” said Stan Shipley at Evercore. “Today’s US economic releases were weaker on balance than expected.”

The S&P 500 fell 0.5%. The Nasdaq 100 slid 0.6%. The Dow Jones Industrial Average slipped 0.8%.

The yield on 10-year Treasuries declined five basis points to 4.45%. The Bloomberg Dollar Spot Index rose 0.2%.

Corporate Highlights:

The US Justice Department has been investigating UnitedHealth Group Inc.’s Medicare billing practices, a person familiar with the matter said. The company’s stock fell sharply.
Coinbase Global Inc. said the Securities and Exchange Commission has agreed to drop its lawsuit that accused the largest US cryptocurrency trading platform of running an illegal exchange. The agreement is pending commissioner approval.
US prosecutors and regulators are investigating a $32 million deal between CrowdStrike Holdings Inc. and a technology distributor to provide cybersecurity tools to the Internal Revenue Service, according to two people familiar with the matter and a document seen by Bloomberg News.
Booking Holdings Inc., the parent to travel brands such as Kayak and Priceline, delivered better-than-expected fourth-quarter results following a bustling holiday season.
Rivian Automotive Inc. tumbled after warning it’s poised for a first-ever decline in electric-vehicle deliveries in 2025, heralding a new challenge after the company achieved a long-held profitability goal.
Akamai Technologies Inc., an infrastructure software company, gave an outlook that is weaker than expected. At least two firms downgraded the stock.
Block Inc. sank after the digital-payments company posted fourth-quarter profit and revenue below analysts’ forecasts.
Celsius Holdings Inc.’s revenue beat estimates. The company also confirmed it would buy rival Alani Nutrition for $1.8 billion in cash and stock, including $150 million in tax assets.
Novo Nordisk A/S’s weight-loss and diabetes drugs are no longer in short supply, US regulators said, a decision that’s expected to curtail widespread access to cheaper copies of the popular medications.

Some of the main moves in markets:

Stocks

The S&P 500 fell 0.5% as of 11:16 a.m. New York time
The Nasdaq 100 fell 0.6%
The Dow Jones Industrial Average fell 0.8%
The Stoxx Europe 600 rose 0.5%
The MSCI World Index fell 0.4%
The Russell 2000 Index fell 1%
Bloomberg Magnificent 7 Total Return Index fell 0.9%

Currencies

The Bloomberg Dollar Spot Index rose 0.2%
The euro fell 0.5% to $1.0453
The British pound fell 0.2% to $1.2646
The Japanese yen was little changed at 149.60 per dollar

Cryptocurrencies

Bitcoin rose 0.4% to $98,559.42
Ether rose 0.9% to $2,752.83

Bonds

The yield on 10-year Treasuries declined five basis points to 4.45%
Germany’s 10-year yield declined seven basis points to 2.46%
Britain’s 10-year yield declined three basis points to 4.57%

Commodities

West Texas Intermediate crude fell 2.1% to $70.93 a barrel
Spot gold fell 0.2% to $2,932.76 an ounce

–With assistance from Sujata Rao, Macarena Muñoz, Anand Krishnamoorthy and Divya Patil.