
© Reuters Tech Stocks Drag Down Wall Street in 2024 Opener Amid Rate Hike Concerns”
Quiver Quantitative – The U.S. inventory market began 2024 on a tepid notice as a mixture of components, together with rising Treasury yields and a downgrade for Apple (NASDAQ:), weighed on investor sentiment. Despite ending 2023 with good points, Wall Street’s main indexes confronted early strain within the new 12 months. The yield on surged previous 4.0000%, a two-week excessive, dampening enthusiasm for equities and prompting a reevaluation of expectations concerning Federal Reserve fee cuts.
Apple’s (AAPL) inventory skilled a 3.3% drop after Barclays (BCS) shifted its ranking to “underweight” on account of projected weaker iPhone demand. This decline contributed considerably to the broader market downturn, with different megacap shares like Nvidia (NASDAQ:) and Microsoft (NASDAQ:) additionally recording substantial losses of three.5% and 1.7%, respectively. Phil Blancato, CEO of Ladenburg Thalmann Asset Management, identified that this might be a interval of realignment and profit-taking after the sturdy rally from the earlier 12 months’s lows.
Market Overview:
-U.S. equities dipped on the primary buying and selling day of 2024, pressured by rising Treasury yields and profit-taking.
-Broad indexes retreated: Dow Jones (0.19%), S&P 500 (0.73%), Nasdaq (1.49%).
-Megacap tech shares led declines: Nvidia (3.5%), Microsoft (1.7%), Apple (3.3% after Barclays downgrade).
-Healthcare outperformed, whereas tech suffered essentially the most.
Key Points:
-Bitcoin surged above $45,000 for the primary time since April 2022, boosting crypto-linked shares: Marathon Digital (NASDAQ:) (8.9%), MicroStrategy (13%).
-Investors cautious regardless of sturdy 2023 fueled by AI optimism and easing rates of interest.
-Economic knowledge releases, Fed minutes, and presidential elections seen as potential market catalysts within the coming months.
Looking Ahead:
-Weekly jobless claims, payrolls knowledge, and repair sector knowledge on the docket for the week.
-Fed December assembly minutes due Wednesday, scrutinized for clues on potential fee cuts.
-Traders count on close to 70% likelihood of a 25-basis-point fee lower in March, in accordance with CME Group’s (NASDAQ:) FedWatch software.
Health shares (XLV) bucked the development by rising 1%, whereas data expertise shares (XLK) led the declines with a 2.5% drop. The volatility index additionally spiked, indicating heightened investor apprehension.
Looking forward, market focus will likely be on upcoming financial knowledge, together with jobless claims and non-farm payrolls, in addition to the Fed’s assembly minutes, which might present insights into future fee selections. Traders presently anticipate a excessive chance of a fee lower in March. Cryptocurrency-related corporations like Marathon Digital Holdings (MARA) and MicroStrategy (MSTR) noticed good points amid a surge in ‘s worth, whereas Boeing (NYSE:) confronted a decline after being faraway from Goldman Sachs (GS) “conviction list.”
This article was initially revealed on Quiver Quantitative