From Nasdaq:

U.S. stock index futures dropped as Apple fell due to a broker downgrade, causing concerns over whether the market’s gains from last year could continue. The S&P 500, the Nasdaq, and the Dow all saw double-digit gains in 2023, with the S&P 500 nearing its record closing high from 2022.

However, U.S. stock futures were under pressure and U.S. Treasury note yields rose above 4.000%, impacting global borrowing costs. Megacap stocks, including Nvidia, Tesla, and Alphabet, lost value in premarket trading, along with Apple, which fell by 1.8% after a brokerage downgrade.

Dow e-minis were down 0.52%, S&P 500 e-minis were down 0.7%, and Nasdaq 100 e-minis were down 1.02%. With a potential slowdown in the labor market and the looming presidential elections, the prospect of further market gains in 2024 is uncertain.

Data this week includes weekly jobless claims, private and non-farm payrolls data, and S&P Global’s final reading of U.S. manufacturing activity for December. The Fed’s December policy meeting minutes are also highly anticipated and could reveal details about potential rate cuts.

Traders anticipate a near 90% chance of a pause in rate hikes in the January meeting and an 82% chance of a 25-basis point cut for the March meeting. In premarket trading, stocks of companies linked to cryptocurrencies gained.

Coinbase Global and MicroStrategy jumped 4.1% and 7.7%, respectively, as bitcoin surged above $45,000 for the first time since April 2022. Energy majors Exxon Mobil and Chevron gained 0.8% and 1%, respectively, due to a jump in crude prices. Boeing shed 1.3% after being removed from Goldman Sachs’ “conviction list.”

Source: Reuters



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