Stock market news today: US futures retreat from rally as Fed doubts … – Yahoo Finance

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Stock futures pulled back on Monday as doubts crept in about the prospects for a US interest-rate cut, with the key monthly jobs report on the horizon.

S&P 500 (^GSPC) futures slipped about 0.4% from a 2023 closing high posted Friday, while Dow Jones Industrial Average (^DJI) futures shed roughly 0.3%. Contracts on the tech-heavy Nasdaq 100 (^NDX) were around 0.5% lower.

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Stocks have rallied, lifting the gauges to five weekly wins in a row, as investors stuck with the idea that the Federal Reserve would start cutting rates early next year. Those expectations have also dragged down Treasury yields in recent days, even after Fed Chair Jerome Powell pushed back against talk of an end to rate hikes.

Both stocks and bonds are now in retreat on Wall Street as a growing chorus of analysts warn that the rally in those assets is overdone. The 10-year Treasury yield (^TNX) was up 5 basis points to about 4.25%.

The November jobs report, scheduled for release Friday, could also take wind out of the rally’s sails, depending on whether the data contradicts the notion the Fed is done with hikes. Cooling in the labor market is a key factor in policymakers’ decision making.

Read more: What the Fed rate-hike pause means for bank accounts, CDs, loans, and credit cards

Elsewhere in markets, those Fed pivot hopes helped boost bitcoin (BTC-USD) prices to top $41,000, levels last seen before the 2022 crypto rout. Other digital currencies also gained amid expectations the SEC will greenlight US spot bitcoin ETFs in January.

Meanwhile, spot gold on Monday rose more than 3% to top $2,130 an ounce, notching a fresh record high for the second day in a row, before paring gains.

In individual stocks, Hawaiian (HA) shares skyrocketed about 190% after Alaska Air (ALK) said it will pay close to four times Friday’s closing price to buy the troubled fellow airline. Alaska shares fell about 12%.

  • Spotify commits to another round of layoffs

    Spotify (SPOT) plans to lay off 17%, or about 1,500, of its employees — its third round of layoffs this year.

    Spotify CEO Daniel Ek announced the news in a letter to staff on Monday. The executive said, despite the streamer’s recent efforts to boost margins, economic growth has “slowed dramatically” as higher interest rates squeeze profits amid increased capital expenses.

    “I realize that for many, a reduction of this size will feel surprisingly large given the recent positive earnings report and our performance,” Ek said. “We debated making smaller reductions throughout 2024 and 2025.”

    But he said that given the gap between the company’s financial goals and operational costs he decided “that a substantial action to rightsize our costs was the best option to accomplish our objectives.”

    Spotify stock climbed about 6% higher in pre-market trading on Monday following the news.

    “The Spotify of tomorrow must be defined by being relentlessly resourceful in the ways we operate, innovate, and tackle problems,” Ek continued. “This kind of resourcefulness transcends the basic definition – it’s about preparing for our next phase, where being lean is not just an option but a necessity.”

    The company laid off about 600 employees in January and another 200 workers in June.

    According to an SEC filing, the company estimates that it will incur approximately €130 million to €145 million in charges in the current quarter, primarily consisting of severance-related pay and the impairment of real estate assets as a part of the staff reduction.

    The latest round of job cuts comes after the streaming service turned a profit in the third quarter — its first quarterly profit in over a year following recent price hikes coupled with lower-than-expected costs related to personnel and marketing spend.

    Read more here.

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