From Nasdaq, Inc.:

The Dow Jones Industrial Average fell 0.19% to 37,619.32, the S&P 500 dropped 0.73% to 4,734.93 and the Nasdaq Composite was down 1.49% at 14,787.29, driven by a fall in Mega Cap stocks. The first month of 2024 is predicted to be challenging, leading to profit-taking and portfolio realignments due to recent market growth. Interest rates are anticipated to be pivotal at the beginning of the year. Health stocks outperformed, while the CBOE Volatility index reached a near two-week high at 14.23 points.

Markets are being tested by more inflation data, presidential elections, and data such as Weekly jobless claims and services sector data. However, lingering uncertainty about the timing of potential rate cuts currently prevails as the Fed is expected to hold rates at its January meeting. The possibility of a 25-basis point cut in March is 70%, according to the CME Group’s FedWatch tool.

Bitcoin’s rally above $45,000 for the first time since April 2022 also has led to an optimistic outlook for the approval of exchange-traded spot bitcoin funds. Companies connected to cryptocurrencies, like Marathon Digital Holdings and MicroStrategy, surged. In comparison, Boeing fell 1.4% after being removed by Goldman Sachs from its “conviction list”.

In trading, declining issues outnumber advancers for a 1.81-to-1 ratio on the NYSE and 1.61-to-1 on the Nasdaq. The S&P index made 10 new 52-week highs and no new lows, while the Nasdaq recorded 27 new highs and 15 new lows. The Fed’s December policy meeting minutes are due on Wednesday, and market watchers anticipate potential rate cut timing.



Read more: US STOCKS-Wall St kicks off 2024 on a dull note as yields rise, Apple dips