Stocks Extend Slump as Tech Rout Deepens

Market Overview - The markets are focusing on earnings and economic news, with expectations for December JOLTS job openings to increase by 104,000 to 7.250 million [1] - The University of Michigan's January consumer sentiment index is expected to decline by 1.4 points to 55.0 [1] Cryptocurrency Market - Bitcoin is down over 3% to a 1.25-year low, marking a 45% decline from its October record high [2] - Inflows into US spot Bitcoin ETFs have reversed, with approximately $2 billion withdrawn in the past month and over $5 billion in the last three months [2] Labor Market and Economic Indicators - Fed Governor Lisa Cook supports the decision to hold interest rates steady, citing risks tilted toward higher inflation [3] - Challenger's January job cuts rose by 117.8% year-over-year to 108,435, the largest for January since 2009 [3] - Weekly initial unemployment claims increased by 22,000 to an 8-week high of 231,000, exceeding expectations of 212,000 [3] Stock Market Performance - The S&P 500 and Nasdaq 100 are experiencing losses, with the S&P 500 falling to a 2-week low and the Nasdaq 100 to a 2.5-month low [4] - Qualcomm's forecast of weaker-than-expected Q2 revenue led to a decline of over 9% in its stock, impacting chip stocks [4] - Alphabet's forecast for full-year 2026 capital expenditures of $175 billion to $185 billion, significantly above the consensus of $119.5 billion, has raised concerns about its free cash flow [4] Earnings Season Insights - 150 S&P 500 companies are scheduled to report earnings this week, with 81% of the 237 companies that have reported so far beating expectations [6] - S&P earnings growth is projected to rise by 8.4% in Q4, marking the tenth consecutive quarter of year-over-year growth [6] - Excluding the Magnificent Seven technology stocks, Q4 earnings are expected to increase by 4.6% [6] Interest Rates and Bond Market - March 10-year T-notes are up by 10 ticks, with the yield down by 4.0 basis points to 4.234% [8] - The increase in T-notes is attributed to safe-haven demand amid stock market weakness and rising unemployment claims [8] International Market Performance - European stock markets are lower, with the Euro Stoxx 50 down by 1.05% and China's Shanghai Composite down by 0.64% [7] - Japan's Nikkei Stock 225 closed down by 0.88% [7] Company-Specific Movements - Estee Lauder is down over 19% after forecasting full-year adjusted EPS of $2.05 to $2.25, below the consensus of $2.17 [15] - Qualcomm's Q2 revenue forecast of $10.2 billion to $11.0 billion is below the consensus of $11.18 billion, leading to a decline of over 9% [12] - McKesson Corp is up over 13% after reporting Q3 adjusted EPS of $9.34, exceeding the consensus of $9.27 [17] - Align Technology is up over 11% after reporting Q4 adjusted EPS of $3.29, stronger than the consensus of $2.97 [17]