The technological fall in the markets continues

This report is from today’s CNBC Daily Open, our international markets newsletter. CNBC Daily Open brings investors up to speed on everything they need to know, no matter where they are. Do you like what you see? You can subscribe here.

Nasdaq still lags other major indices
He S&P 500 and Dow Jones Industrial Average rose on Tuesday, but the Nasdaq Composite retreated, turning it into the the second day underperforms. from europe Stoxx 600 Index fell 0.08%, give up previous gains. PA fell 2.5% after the oil giant saying Its fourth-quarter earnings will be hit by a $300 million increase due to weaker refinery margins.

Meta cuts jobs as Microsoft freezes hiring
Goal will be Cut about 5% of your lowest performing employees.CNBC confirmed on Tuesday. CEO Mark Zuckerberg informed employees of the decision in a memo posted to the company’s internal forum on Tuesday. Separately, microsoft plans suspend hiring in part of its consulting business in the United States, according to an internal memo.

SEC sues Musk over Twitter shares
The SEC filed a lawsuit against Elon Musk on Tuesday, alleging that the billionaire committed securities fraud in 2022 by failing to disclose his ownership on Twitter and purchasing stocks at “artificially low prices.” Prior to Musk’s acquisition of Twitter in 2022, he had amassed a position in the company of more than 5%, which would have required disclosing his stake to the public within 10 calendar days of reaching that threshold.

Slower increase in producer prices
US producer prices in December rose 0.2% in the monthaccording to a Bureau of Labor Statistics Report Tuesday. This is lower than the 0.4% increase in November, as well as the Dow Jones consensus estimate of 0.4%. In annual terms, the general producer price index increased by 3.3% by 2024, compared to an increase of 1.1% in 2023.

US Dollar Strength Winners and Losers
The US dollar index, which measures the dollar against a basket of rivals, hit its highest level in more than two years on Monday, following a better-than-expected US jobs report last week. Here are the biggest winners and losers in Europe due to the increase in the dollar, according to analysts.

(PRO) Is the Nasdaq liquidation a minor adjustment?
On Tuesday, the Nasdaq Composite fell for the fifth day in a row. However, some wealth managers say this could be a minor adjustment to the market rather than the start of a recession. They explain why they are not too worried about settlement.

The Nasdaq Composite lost 0.23%, lagging the S&P 500 and the Dow Jones Industrial Average, which gained 0.11% and 0.52%, respectively, for the second day in a row. All shares of the Magnificent Seven fell, with Meta, tesla and NVIDIA recording the largest losses, in that order.

Compounding the sector’s misery, the drop in tech stocks was accompanied by news of layoffs and hiring freezes.

In an attempt to reduce expenses, Microsoft will suspend hiring for part of its consulting unit, reduce travel expenses and cut marketing expenses, according to an internal memo.

Meanwhile, Meta announced in an internal memo Tuesday that it will “exit approximately 5% of our worst results.” (I guess that’s how one “gets out” of fact-checking or “enters” free speech.) Zuckerberg also warned employees that 2025 will be “an intense year.”

Zuckerberg’s warning was directed at Meta, of course, but it could also apply to tech companies facing heavy investments in artificial intelligence, without necessarily having the revenue to justify such a large capital expenditure.

However, as we enter the fourth quarter earnings season, there are signs of optimism in the business environment for this year.

“We think earnings will be stronger,” said Jay Hatfield, founder of Infrastructure Capital Advisors.

“The economy is strong in the fourth quarter. Typically, companies learn if they have a problem by then, and they will probably be quite optimistic about the future because the Trump administration is pro-business. So we think that most directors executives “We are quite optimistic about the forecast for 2025.”

Perhaps optimistic CEOs are leading other sectors, as suggested by the moves of investors, who shifted from technology to utilities, financials and materials on Tuesday.

The persistence of this sectoral rotation will depend on the consumer price index, which will fall later today.

— CNBC’s Lisa Kailai Han, Hakyung Kim and Brian Evans contributed to this report.