In a downbeat start to 2024, US stocks faced a morning decline on Tuesday, marking a shift after a winning year that saw the S&P 500 narrowly miss setting a new record high. The benchmark S&P 500 (^GSPC) experienced a nearly 0.6% loss, while the Dow Jones Industrial Average (^DJI) dipped 0.3%, shedding approximately 100 points. The tech-heavy Nasdaq Composite (^IXIC) also faced a setback, losing about 0.9%.
The stock market’s recent rally, which had been on an upswing for two months, came to a halt on Friday. Despite the pause, the major gauges concluded 2023 with robust yearly gains. Additionally, the S&P 500 clinched its 9th consecutive weekly win, marking the longest winning streak since 2004 and inching closer to surpassing its all-time closing high of 4,796.56.
Tech stocks, however, experienced a downturn following a downgrade in Apple’s stock by Barclays analysts. The downgrade cited concerns about demand for new iPhones, leading to a 1.7% decline in Apple (AAPL) shares as tech stocks faced a broader slide.
This week’s economic updates could further challenge the ongoing rally, particularly with the highly anticipated December jobs report due on Friday. Investors are closely monitoring the report for its potential to influence the Federal Reserve’s decisions, as there is speculation that interest-rate cuts may be swift and deep in 2024, which has been a key driver in buoying stock prices.
In other sectors of the market, oil prices surged as tensions escalated in the geopolitical arena. Iran’s decision to send a warship to the Red Sea in response to the US Navy’s sinking of three Houthi boats over the weekend led to a more than 2% climb in both West Texas Intermediate crude (CL=F) and Brent crude (BZ=F) futures.
Simultaneously, the cryptocurrency market experienced notable movements. Bitcoin prices jumped over 3%, surpassing $45,000 for the first time since early 2022. This surge was fueled by growing optimism that the Securities and Exchange Commission (SEC) might soon approve a spot bitcoin exchange-traded fund (ETF). The positive momentum in the crypto market reflected in premarket trading, with Marathon Digital (MARA) shares surging almost 12% to recover some recent losses.
In the wake of the morning decline in US stocks, investors navigate a landscape of heightened uncertainty, evaluating the implications of early market setbacks for the remainder of the trading day.
Source: Yahoo Finance
