Stocks experienced a mixed performance on Wall Street on Monday, as the Dow Jones Industrial Average faced a downturn, largely attributed to a sell-off in Boeing (BA) shares and lingering uncertainty surrounding the potential for interest-rate cuts.
The Dow Jones Industrial Average (^DJI) dipped approximately 0.4%, shedding 170 points, while the S&P 500 (^GSPC) managed a modest 0.2% gain. The Nasdaq (^IXIC), focusing on technology stocks, saw a more positive trajectory with a 0.5% increase. This movement followed the conclusion of a nine-week winning streak for all three major stock indexes on Friday.
Boeing, a major player in the Dow, experienced a significant setback as its shares plummeted by as much as 9%. The catalyst for this decline was the grounding of certain 737 Max 9 jets by U.S. authorities due to a midair fuselage blowout incident. This development had a ripple effect on related stocks, affecting Alaska Airlines (ALK) and United Airlines (UAL), both operators of the Max 9 jets, with their shares losing ground. Fuselage maker Spirit AeroSystems (SPR) also witnessed a notable decline, with shares sinking over 10%.
Investors, wary of recent market turbulence in the early days of 2024, are proceeding cautiously, influenced in part by dwindling expectations for an imminent rate cut from the Federal Reserve. The strong labor market data, particularly a December jobs report exceeding expectations, has fueled debates regarding the future trajectory of Fed policy.
Anticipation looms over the upcoming week, where key market influencers include earnings reports from major banks and a critical reading on inflation. The Consumer Price Index (CPI) inflation reading is scheduled for Thursday, coinciding with the commencement of the fourth-quarter earnings season with reports from JPMorgan (JPM), Wells Fargo (WFC), and Bank of America (BAC).
In a significant development, congressional leaders announced on Sunday that they have reached a $1.59 trillion spending deal, effectively averting a potential government shutdown. This news may alleviate some risks for investors. The benchmark 10-year Treasury yield (^TNX) managed to hold above 4%, maintaining its position after last week’s gains.
On the commodities front, oil prices experienced a decline of up to 3%, driven by investor reactions to Saudi Arabia’s decision to reduce key prices of crude supplies across all regions, including its primary Asian market. The move added an additional layer of complexity to the broader market dynamics.
In conclusion, Monday’s trading session witnessed a mixed performance on Wall Street, with the Dow facing headwinds from Boeing’s share slump, while the S&P 500 and Nasdaq displayed resilience amid lingering uncertainties in the market.
Source: Yahoo Finance
