The S&P 500 index lost 26.79 points, or 0.6%, to 4,743.04, while the Nasdaq fell 246.58 points, or 1.6%, to 14,764.77. Meanwhile, the Dow Jones fell 31.47 points, or 0.08%, to 37,721.01 units.
In Wall Street, The S&P 500 and the Nasdaq Composite ended the first trading session of 2024 lower, after the fall in Apple shares as a result of the downgrading your credit rating and the declines of other big tech stocks sparked by rising Treasury yields.
The S&P 500 index lost 26.79 points, or 0.6%, to 4,743.04 unitsMeanwhile he Nasdaq fell 246.58 points, or 1.6%, to 14,764.77 units. Meanwhile, the Industrial Average Dow Jones fell 31.47 points, or 0.08%, to 37,721.01 units.
The S&P 500 traded mixed. The healthcare sector was one of the most bullish, with Moderna leading the way after broker Oppenheimer upgraded the vaccine maker and reiterated the company’s goal of achieving sales growth in 2025.
The weak opening session of 2024 comes after a year of all three major Wall Street indexes posting double-digit gains, driven by optimism about artificial intelligence and stabilizing inflation.
The S&P 500 ended last week within 1% of its all-time high from January 3, 2022. However, equities came under pressure on Tuesday as the 10-year US Treasury yieldthe benchmark for global borrowing costs, surpassed 4% and reached a two-week high, before a slight decline.
The move reflected investors’ tempered expectations for U.S. interest rate cuts this year. In turn, it weighed on growth stocks – including technology stocks – which would benefit from a more favorable rate environment.
Wall Street: sharp fall in Apple shares
Apple fell after Barclays cut its recommendation for the tech giant to “underweight”, citing lower demand for the iPhone. Big stocks like Nvidia and Microsoft also fell.
“Everyone was excited about the rally of the last few days, the Federal Reserve – at least in appearance – slowing down a bit and the fact that we didn’t have a recession”said Jason Pride, head of investment strategy and research at Glenmede.
“But does that mean we’re out of the woods now? I suspect that even if the Fed gradually lowers rates, monetary policy remains tight and is likely to remain a drag on overall economic activity,” he added.
Minutes from the Fed’s December policy meeting and a host of labor market data are on this week’s agendain which market participants seek to determine the timing of potential rate cuts.
Although the Fed will keep rates at its January meeting, Traders expect a near 70% probability of a 25 basis point cut in March, according to the CME Group’s FedWatch tool.
Source: Ambito
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