From Nasdaq Inc.:

The S&P 500 and Nasdaq Composite dipped in 2024’s first trading day due to Apple shares’ fall after a downgrade. Treasury yields briefly rose, decreasing interest-rate cut expectations, concluding a year of double-digit index gains. US Treasury yields ticked above 4.000% then tapered below 3.95%. Other tech stocks fell between 1.8% and 3% after Apple’s loss.

The Fed’s December policy meeting minutes and labor market data are on this week’s agenda to determine potential rate cuts. Although a rate hold is expected at the January meeting, a near 70% chance of a 25-basis point cut in March is predicted by the CME Group’s FedWatch tool. Dow Jones rose to 37,719.75, S&P 500 dropped to 4,741.95 and Nasdaq dropped to 14,760.71 at 1:54 p.m. ET.

Apple’s loss prompted other tech companies to follow suit, the Dow, the S&P 500, and the Nasdaq reported nine consecutive weekly gains, the longest since 2004 for the S&P 500 and since 2019 for the Dow and the Nasdaq. This week, the Fed’s December policy meeting minutes and labor market data take center stage to determine the timing of potential rate cuts.

The Health Stocks rose 1.7% to a year’s highest level, while Energy was a leading gainer rising up 1.6%. Unfortunately, Information technology led declines with a 2.8% drop. Tesla traded flat despite stating that it had delivered a record number of electric vehicles in the fourth quarter. Marathon-Digital-Holdings and MicroStrategy spiked due to bitcoin’s rise above $45,000 for the first time since April 2022.

Boeing fell 3.2% after Goldman Sachs removed the aerospace company from its “conviction list”. Citigroup reached its highest level in 11 months, advancing 3.1% after Wells Fargo maintained its price target. Crypto-related stocks gained momentum as optimism around the possible approval of exchange-traded spot bitcoin funds increased.

Overall, the first trading session of 2024 turned out to be lackluster. The S&P 500 and Nasdaq Composite dropped, major stocks including Apple, Nvidia, Meta Platforms, and Microsoft fell between 1.8 and 3% after a decline in Apple stocks followed by a rise in Treasury yields. The Health and Energy sectors continue to perform well while the Information technology sector has witnessed a considerable drop. Investors are looking at the Fed’s December policy meeting minutes and labor market data this week to predict potential rate cuts.



Read more: US STOCKS-S&P, Nasdaq start 2024 in subdued fashion as Apple weighs