US stock indices closed lower again in the second session of the year due to profit taking after a strong 2023.
Wall Street 2024 begins with profit taking: it fell for the second day in a row
NYSE
US stock indices closed the second session of the year lower again due to profit-taking after a strong 2023 and minutes from the Federal Reserve’s December meeting that failed to alleviate the fear that weighed on the markets.
According to preliminary data, the Industrial Average Dow Jones lost 0.8%, to 37,425.31 units; the index S&P 500 it gave up 0.8%, to 4,704.15 units; and the Nasdaq Composite it subtracted 1.2%, to 14,589.14 units.
Wall Street: what data impacts the price
Fed policymakers seemed increasingly convinced that inflation was under control, with fewer “upside risks” and growing concern about the damage that an “overly restrictive” monetary policy could do to the economy, minutes released Wednesday showed. The minutes shed little light on when the rate cuts might begin.
“I don’t think there’s anything too surprising” in the minutessaid Garrett Melson, portfolio strategist at Natixis Investment Managers Solutions. Much of the messaging around rate cuts had already been advanced by Fed Chairman Jerome Powell and other policymakers in recent weeks, he noted.
Wall Street started the new year on a bearish note on Tuesday, as Manzana and high-growth companies were pressured by the rise in bond yields, which stopped a dizzying rally in the stock markets.
Last week, the benchmark S&P 500 was close to hitting its all-time closing high as investors anticipated aggressive rate cuts this year following signs of cooling inflation. The negative trend persisted on Wednesday, and rate-sensitive mega-capital stocks such as Nvidia, Apple and Teslaended lower.
“We’ve had a big rally off the October lows, and many indicators are screaming overbought, so it’s not surprising to see a bit of respite,” Natixis’ Melson said.
Although the Fed is expected to hold rates in January, Traders discounted 67% chance of 25 basis point rate cut in Marchor, according to CMEGroup’s FedWatch tool.
Source: Ambito
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