The Destiny Tech100 Inc. ETF is experiencing significant downward pressure due to a confluence of market factors impacting the technology sector. On December 20, 2024, U.S. stock futures fell sharply, with the Nasdaq 100 futures dropping 1.7% as tech shares led the decline. This comes amid heightened market volatility following the Federal Reserve's recent decision to cut interest rates by 25 basis points while signaling a slower pace of rate cuts in 2025. The Fed's outlook, which highlighted persistent inflation risks, has spurred concerns among investors, leading to a sell-off in tech stocks. Additionally, the failure of a government funding measure endorsed by former President Trump has added to market uncertainty, with a potential government shutdown looming.
The broader market sentiment is further dampened by the anticipation of November's personal consumption expenditures price index, the Fed's preferred inflation gauge. Analysts expect a 0.2% month-over-month increase, with core inflation projected to rise 2.9% annually, exceeding the Fed's 2% target. This has contributed to a rise in the 10-year Treasury yield above 4.5%, exerting additional pressure on equities. The tech sector, which is particularly sensitive to interest rate changes, is bearing the brunt of these developments, as evidenced by the premarket declines in major tech stocks like Tesla and Nvidia.
The Destiny Tech100 Inc. ETF is down 8.42% in premarket hours on Friday, December 20, falling to $55.05 as of 8:15 AM ET.