{"id":73151,"date":"2024-01-03T09:02:24","date_gmt":"2024-01-03T14:02:24","guid":{"rendered":"https:\/\/blog.t3live.com\/?p=73151"},"modified":"2024-01-03T09:02:24","modified_gmt":"2024-01-03T14:02:24","slug":"coffee-with-greta-tech-decline","status":"publish","type":"post","link":"https:\/\/blog.t3live.com\/2024\/01\/03\/coffee-with-greta-tech-decline\/","title":{"rendered":"Coffee With Greta: Tech Decline"},"content":{"rendered":"

DJIA Futures: <\/b>-113 (-0.3%)<\/span><\/p>\n

SPX Futures: <\/b>-17 (-0.4%)<\/span><\/p>\n

NASDAQ Futures: <\/b>-83 (-0.5%)<\/span><\/p>\n

Good morning friends!<\/span><\/p>\n

Futures are dropping as traders continue to sell-off big tech stocks.<\/span><\/p>\n

Let\u2019s get right to it!<\/span><\/p>\n

Tech Slide Continues<\/span><\/h2>\n

Tech stocks are leading the decline again this morning after the <\/span>Nasdaq <\/b>logged its worst day since October on Tuesday.\u00a0<\/span><\/p>\n

Apple <\/b>(AAPL) shares are down 0.4% ahead of the open with other Magnificent 7 names like <\/span>Nvidia <\/b>(NVDA), <\/span>Tesla <\/b>(TSLA), and <\/span>Meta <\/b>(META) all falling more than 1%.\u00a0<\/span><\/p>\n

The pullback in tech also comes as Treasury yields push higher.\u00a0<\/span><\/p>\n

The 10-year yield is up three basis points at 3.97% while the 2-year yield is up two basis points at 4.35%.<\/span><\/p>\n

Hawkish Fed Comments<\/span><\/h2>\n

Richmond Fed President Thomas Barkin refuses to say rate hikes are definitely done.\u00a0<\/span><\/p>\n

Speaking at an event this morning, Barking said hikes remain \u201con the table\u201d if inflation does not continue on a downward path.\u00a0<\/span><\/p>\n

But he also expressed optimism about the chance for a soft landing saying, \u201cNow, everyone is talking about the potential for a soft landing, where inflation completes its journey back to normal levels while the economy stays healthy. And you can see the case for that.\u201d<\/span><\/p>\n

Barkin compared the Fed\u2019s fight against inflation to landing an airplane, he said, \u201cThe airport is on the horizon. But landing a plane isn\u2019t easy, especially when the outlook is foggy, and headwinds and tailwinds can affect your course. It\u2019s easy to oversteer and do too much or understeer and do too little.\u201d<\/span><\/p>\n

CME Group\u2019s FedWatch Tool still shows over 67% of traders expecting the Fed\u2019s first rate cut at the March 20 meeting.\u00a0<\/span><\/p>\n

The Fed releases the minutes of its December meeting at 2:00 p.m. ET which will give more insight into the discussion around the updated dot plot which showed plans for three rate cuts this year.<\/span><\/p>\n

Mortgage Demand Drops\u00a0<\/span><\/h2>\n

Mortgage demand tumbled at the end of 2023 despite lower rates.\u00a0<\/span><\/p>\n

The Mortgage Bankers Association reported total application volume dropped 9.4% last week compared with two weeks earlier.\u00a0<\/span><\/p>\n

Purchase applications ended the year 12% lower compared to a year ago while refinance applications were up 15% year over year.\u00a0<\/span><\/p>\n

The average 30-year fixed contract rate ended 2023 at 6.76%.<\/span><\/p>\n","protected":false},"excerpt":{"rendered":"

DJIA Futures: -113 (-0.3%) SPX Futures: -17 (-0.4%) NASDAQ Futures: -83 (-0.5%) Good morning friends! Futures are dropping as traders continue to sell-off big tech stocks. Let\u2019s get right to it! Tech Slide Continues Tech stocks are leading the decline again this morning after the Nasdaq logged its worst day since October on Tuesday.\u00a0 Apple (AAPL) shares are down 0.4% ahead of the open with other Magnificent 7 names like Nvidia (NVDA), Tesla (TSLA), and Meta (META) all falling more than 1%.\u00a0 The pullback in tech also comes as Treasury yields push higher.\u00a0 The 10-year yield is up three basis points at 3.97% while the 2-year yield is up two basis points at 4.35%. Hawkish Fed Comments Richmond Fed President Thomas Barkin refuses to say rate hikes are definitely done.\u00a0 Speaking at an event this morning, Barking said hikes remain \u201con the table\u201d if inflation does not continue on a downward path.\u00a0 But he also expressed optimism about the chance for a soft landing saying, \u201cNow, everyone is talking about the potential for a soft landing, where inflation completes its journey back to normal levels while the economy stays healthy. And you can see the case for that.\u201d Barkin compared the Fed\u2019s fight against inflation to landing an airplane, he said, \u201cThe airport is on the horizon. But landing a plane isn\u2019t easy, especially when the outlook is foggy, and headwinds and tailwinds can affect your course. It\u2019s easy to oversteer and do too much or understeer and do too little.\u201d CME Group\u2019s FedWatch Tool still shows over 67% of traders expecting the Fed\u2019s first rate cut at the March 20 meeting.\u00a0 The Fed releases the minutes of its December meeting at 2:00 p.m. ET which will give more insight into the discussion around the updated dot plot which showed plans for three rate cuts this year. Mortgage Demand Drops\u00a0 Mortgage demand tumbled at the end of 2023 despite lower rates.\u00a0 The Mortgage Bankers Association reported total application volume dropped 9.4% last week compared with two weeks earlier.\u00a0 Purchase applications ended the year 12% lower compared to a year ago while refinance applications were up 15% year over year.\u00a0 The average 30-year fixed contract rate ended 2023 at 6.76%.<\/p>\n","protected":false},"author":41,"featured_media":73157,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[739],"tags":[],"class_list":["post-73151","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-coffee-with-greta"],"_links":{"self":[{"href":"https:\/\/blog.t3live.com\/wp-json\/wp\/v2\/posts\/73151","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/blog.t3live.com\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/blog.t3live.com\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/blog.t3live.com\/wp-json\/wp\/v2\/users\/41"}],"replies":[{"embeddable":true,"href":"https:\/\/blog.t3live.com\/wp-json\/wp\/v2\/comments?post=73151"}],"version-history":[{"count":2,"href":"https:\/\/blog.t3live.com\/wp-json\/wp\/v2\/posts\/73151\/revisions"}],"predecessor-version":[{"id":73160,"href":"https:\/\/blog.t3live.com\/wp-json\/wp\/v2\/posts\/73151\/revisions\/73160"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/blog.t3live.com\/wp-json\/wp\/v2\/media\/73157"}],"wp:attachment":[{"href":"https:\/\/blog.t3live.com\/wp-json\/wp\/v2\/media?parent=73151"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/blog.t3live.com\/wp-json\/wp\/v2\/categories?post=73151"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/blog.t3live.com\/wp-json\/wp\/v2\/tags?post=73151"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}