Tuesday’s decline in US equities set the stage for a negative start to 2024 on Wall Street, following a prosperous year in which the S&P 500 came close to a new all-time high.
In contrast to the S&P 500 (GSPC), which declined by approximately 0.6%, the Dow Jones Industrial Average (DJI) marginally climbed above the neutral zone. The losses were headed by the technology-heavy Nasdaq Composite (IXIC), which fell nearly 1.6%.
The stock rally came to an end on Friday, following two months of gains that contributed to the major gauges concluding 2023 with robust annual gains. Furthermore, the S&P 500 has achieved its ninth consecutive weekly victory, the longest such streak since 2004. Furthermore, it is approaching its all-time closing high of 4,796.56.
Following a downgrade of Apple’s stock by Barclays analysts, technology equities declined on account of apprehensions regarding the demand for new iPhones. Apple (AAPL) shares decreased by nearly 4 percent as technology equities declined.
This week’s economic updates may also put the rally to the test, with the Federal Reserve’s stance potentially influenced by the December employment report, which is scheduled for release on Friday. In 2024, investors’ wagers that interest rate decreases will be swift and substantial have bolstered the stock market.
What the Fed’s halt on rate hikes means for credit cards, bank accounts, CDs, and loans
Oil prices increased in other markets subsequent to Iran’s deployment of a warship to the Red Sea, which was a reaction to the US Navy’s weekend sinking of three Houthi vessels. As tensions escalated, futures on West Texas Intermediate crude (CL=F) and Brent crude (BZ=F) increased by more than 1%.
In the interim, bitcoin prices surpassed $45,000 for the first time since early 2022, surging nearly 3 percent, on expectations that the SEC will soon authorize a spot bitcoin ETF.
