FOLKS, AS PREDICTED WE HAVE BEEN EXPERIENCING GROUNDHOG DAY VOLATILITY WHICH HISTORICALLY CAN COME TWO WEEKS EITHER SIDE OF OUR FURRY FRIEND’S APPEARNCE.

U.S. Stocks Regain Ground Following Yesterday’s Tech Sell-Off

After seeing considerable weakness in the previous session, stocks showed a strong move back to the upside during trading on Tuesday. The tech-heavy Nasdaq led the way higher after posting a particularly steep loss on Monday.

The Nasdaq surged 391.75 points or 2.0 percent to 19,733.59, partly offsetting the 3.1 percent plunge seen during yesterday’s session. The S&P 500 also jumped 55.42 points or 0.9 percent to 6,067.70, while the narrower Dow rose 136.77 points or 0.3 percent to 44,850.35.

The strength on Wall Street came as some traders looked to pick up technology stocks at somewhat reduced levels following the sell-off seen in the sector during Monday’s trading.

Shares of Nvidia (NVDA) soared by 8.8 percent after the AI darling and market leader plunged by 17.0 percent in yesterday’s session.

Buying interest was somewhat subdued, however, as traders looked ahead to the Federal Reserve’s monetary policy announcement on Wednesday.

The Fed is almost universally expected to leave interest rates unchanged, but traders are likely to pay close attention to the accompanying statement for clues about the outlook for rates.

Recent economic data has led to concerns about the Fed leaving rates on hold for a prolonged period, but many economists still expect the central bank to resume cutting rates sometime in the first half of the year.

CME Group’s FedWatch Tool is currently indicating a 74.5 percent chance rates will be lower by at least a quarter point following the Fed’s June meeting.

In U.S. economic news, a report released by the Commerce Department unexpectedly showed a steep drop by new orders for U.S. manufactured durable goods in the month of December amid a nosedive by orders for transportation equipment.

The Commerce Department said durable goods orders plunged by 2.2 percent in December after tumbling by a revised 2.0 percent in November.

Economists had expected durable goods orders to climb by 0.8 percent compared to the 1.2 percent slump that had been reported for the previous month.

However, excluding the steep drop by orders for transportation equipment, durable goods orders rose by 0.3 percent in December after edging down by 0.2 percent in November. Ex-transportation orders were expected to increase by 0.4 percent.

The Conference Board also released a report showing its U.S. consumer confidence index decreased from a notably upwardly revised level in January.

The report said the consumer confidence index slid to 104.1 in January from an upwardly revised 109.5 in December.

Economists had expected the consumer confidence index to climb to 106.3 from the 104.7 originally reported for the previous month.

Sector News

Software stocks turned in some of the market’s best performances on the day, resulting in a 3.0 percent surge by the Dow Jones U.S. Software Index.

Considerable strength was also visible among brokerage stocks, as reflected by the 1.3 percent gain posted by the NYSE Arca Broker/Dealer Index.

Semiconductor and networking stocks also regained ground following yesterday’s sell-off, while airline stocks showed a significant move to the downside, dragging the NYSE Arca Airline Index down by 2.4 percent.

Oil producer, commercial real estate and pharmaceutical stocks also saw notable weakness, partly offsetting the strength in the aforementioned sectors.

Other Markets

In overseas trading, stock markets across the Asia-Pacific region moved mostly lower, with several major markets closed for holidays. Japan’s Nikkei 225 Index slumped by 1.4 percent, while Australia’s S&P/ASX 200 Index edged down by 0.1 percent.

Meanwhile, the major European markets ended the day mixed. While the French CAC 40 Index slipped by 0.1 percent, the U.K.’s FTSE 100 Index rose by 0.4 percent and the German DAX Index climbed by 0.7 percent.

In the bond market, treasuries gave back ground as traders looked ahead to the Fed announcement on Wednesday. Subsequently, the yield on the benchmark ten-year note, which moves opposite of its price, rose 2.3 basis points to 4.551 percent.

Looking Ahead

Early trading on Wednesday may be somewhat subdued as traders look ahead to the Fed’s monetary policy announcement in the afternoon.

CHNI: Democrats vote against ban on transgender athletes

Editor: I will say it again. Democrats suffer from mental illness!

https://katherineclark.house.gov/2025/1/chni-democrats-vote-against-ban-on-transgender-athletes

https://tinyurl.com/2s4chzdt

THE PRODUCERS WILL SWALLOW THE TARIFFS TARIFFS ARE NOT GOING TO PRODUCE INFLATION

https://www.howestreet.com/2025/01/stocks-driven-higher-by-ai-energy-demand-mark-leibovit/

NEXT PODCAST THURSDAY EVENING

https://tinyurl.com/38nmcnnz

COME ON, DAD. IT’S TIME TO EAT

DISCLAIMER:

WE ARE NOT FINANCIAL ADVISORS AND DO NOT PROVIDE FINANCIAL ADVICE

The website, LeibovitVRNewsletters.com, is published by LeibovitVRNewsletters LLC.

In using LeibovitVRnewsletters.com (a/k/a LeibovitVRNewsletters LLC) you agree to these Terms & Conditions governing the use of the service. These Terms & Conditions are subject to change without notice. We are publishers and are not registered as a broker-dealer or investment adviser either with the U.S. Securities and Exchange Commission or with any state securities authority.

All stocks and ETFs discussed are HYPOTHETICAL and not actual trades whose actual execution may differ markedly from prices posted on the website and in emails. This may be due internet connectivity, quote delays, data entry errors and other market conditions. Hypothetical or simulated performance results have certain inherent limitations as to liquidity and execution among other variables. PAST RESULTS ARE NOT NECESSARILY INDICATIVE OF FUTURE FORECASTING ACCURACY OR PROFITABLE TRADING RESULTS.

All investments are subject to risk, which should be considered on an individual basis before making any investment decision. We are not responsible for errors and omissions. These publications are intended solely for information and educational purposes only and the content within is not to be construed, under any circumstances, as an offer to buy or to sell or a solicitation to buy or sell or trade in any commodities or securities named within.

All commentary is provided for educational purposes only. This material is based upon information we consider reliable. However, accuracy is not guaranteed. Subscribers should always do their own investigation before investing in any security. Furthermore, you cannot be assured that your will profit or that any losses can or will be limited. It is important to know that no guarantee of any kind is implied nor possible where projections of future conditions in the markets are attempted.

Stocks and ETFs may be held by principals of LeibovitVRNewsletters LLC whose personal investment decisions including entry and exit points may differ from guidelines posted.

LeibovitVRNewsletters.com cannot and do not assess, verify or guarantee the suitability or profitability of any particular investment. You bear responsibility for your own investment research and decisions and should seek the advice of a qualified securities professional before making any investment. As an express condition of using this service and anytime after ending the service, you agree not to hold LeibovitVRNewsletters.com or any employees liable for trading losses, lost profits or other damages resulting from your use of information on the Site in any form (Web-based, email-based, or downloadable software), and you agree to indemnify and hold LeibovitVRNewsletters.com and its employees harmless from and against any and all claims, losses, liabilities, costs, and expenses (including but not limited to attorneys’ fees) arising from your violation of this agreement. This paragraph is not intended to limit rights available to you or to us that may be available under the federal securities laws.

For rights, permissions, subscription and customer service, contact the publisher at mark.vrtrader@gmail.com or call at 928-282-1275 or mail to 10632 N. Scottsdale Road B-426, Scottsdale, AZ 85254.

The Leibovit Volume Reversal, Volume Reversal and Leibovit VR are registered trademarks.

[/fusion_text][/fusion_builder_column][/fusion_builder_row][/fusion_builder_container]