The technical rout in the markets continues

This report is from today's CNBC Daily Open, the international markets newsletter. CNBC Daily Open keeps investors informed on everything they need to know, no matter where they are. Like what you see? You can subscribe here.

The Nasdaq continues to lag other major indexes
the Standard & Poor's 500 and Dow Jones Industrial Average It rose on Tuesday, however Nasdaq Composite She blinked, making it On the second day he performed poorly. Europe Stoxx 600 index It decreased by 0.08% Let go of past gains. baby It fell 2.5% after the oil giant He said Its fourth-quarter profits are expected to reach $300 million due to weak refining margins.

Meta cuts jobs while Microsoft freezes hiring
dead will be Laying off about 5% of its lowest performing employeesCNBC 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 Plan to Pausing hiring for part of its consulting business In the United States, according to an internal memo.

The SEC files a lawsuit against Musk over his Twitter stock
Supreme Education Council File a lawsuit against Elon Musk on Tuesday, alleging that the billionaire committed securities fraud in 2022 by not disclosing his ownership in Twitter and buying shares at “artificially low prices.” Before Musk acquired Twitter in 2022, he had built up a position in the company of more than 5%, which would have required disclosing his holdings to the public within 10 calendar days of reaching that threshold.

The increase in producer prices slows
Producer prices in the United States in December It rose by 0.2% during the monthaccording to A Bureau of Labor Statistics report Tuesday. This is less than November's increase of 0.4% plus the Dow Jones estimate of 0.4%. On an annual basis, the headline producer price index rose by 3.3% for 2024, compared to an increase of 1.1% in 2023.

Winners and losers in the strength of the US dollar
The US dollar index – which measures the US currency against a basket of rival currencies – reached its highest level in more than two years on Monday, following a hotter-than-expected jobs report from the US last week. here Europe's biggest winners and losers From the rise of the dollar, according to analysts.

(PRO) Nasdaq sale slightly modified?
On Tuesday, the Nasdaq Composite Index fell for the fifth day in a row. However, some wealth managers say this may be a minor market adjustment rather than the beginning of a downturn. They explain why they are I'm not too worried about sales.

The Nasdaq Composite lost 0.23%, underperforming the S&P 500 and the Dow Jones Industrial Average — which rose 0.11% and 0.52%, respectively — for the second day in a row. All Magnificent Seven shares fell, with Meta, Tesla and Nvidia Recording the largest losses in this order.

Adding to the sector's misery, the decline in technology stocks was accompanied by news of layoffs and hiring freezes.

In an effort to cut expenses, Microsoft will temporarily halt hiring in part of its consulting unit, cut travel expenses and cut marketing spending, according to an internal memo.

Meanwhile, Meta announced in an internal memo on Tuesday that it will exit approximately 5% of our low performers. (Just as one “goes out” of fact-checking or “goes in” on free speech, I suppose). Zuckerberg also warned employees that 2025 will be an “intense year.”

Of course, Zuckerberg's warning was directed at Meta, but it may also apply to tech companies that are grappling with huge investments in AI, without necessarily having the revenue to justify such high capital spending.

As we enter the fourth quarter earnings season, there are signs of optimism in this year's business environment.

“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're probably going to be very optimistic about the future because the Trump administration is pro-business. So we think most CEOs are very optimistic about the outlook for 2025.”

Upbeat CEOs may be steering other sectors, as suggested by moves from investors, who moved from technology to utilities, financial services and materials on Tuesday.

Whether this sector rotation continues 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.