US Markets Insight: A Closer Look at the Mixed Trends as 2024 Trading Begins
US Markets LIVE, 2 Jan 2024: The US markets opened in the red on the first trading session of 2024, as investors preferred to book profit after last year’s robust rally ahead of the FOMC minutes of the last meeting and key economic data later this week.
The Dow Jones Industrial Average (DJIA) opened lower by 123.32 points at 37566.22, while the S&P 500 index made a negative opening of 24.63 points and opened at 4745.20. The Nasdaq Composite index also opened lower by 137.65 points at 14873.70.
US Markets Live Today
US markets at 11.50 am EDT, Dow Jones erased its early losses and is trading slightly higher by 42.65 points or 0.11 percent at the 37732.19 level, while the S&P 500 is negative by 20.76 points or 0.44 percent at 4749.07 levels. The tech-heavy Nasdaq Composite index extended its early losses and is trading lower by 190.90 points or 1.27 percent at 14820.46 levels.
US Markets News
The US stock markets are trading mixed on Tuesday. Dow recovered its early losses, while the S&P 500 and Nasdaq are trading lower in the first trading session of 2024 due to a surge in Treasury yields. The 10-year US benchmark Treasury yield is approaching again to 4%, up by 7 basis points to 3.942% from the previous close of 3.881%.
The US markets made a superb rally in 2023 with the support of Technology stocks. The Nasdaq composite index gained about 44% in 2023 mainly due to a rally in mega-cap stocks, including Apple soaring 48%, Microsoft up nearly 57%, and Nvidia gaining around 239%.
The 2023 rally in the markets was due to falling inflation and as the US Federal Reserve signaled the end of the interest rate hike and three rate cuts in 2024. Investors anticipated early rate cuts in 2024 after last week’s Personal Consumption Expenditure (PCE) price index data.
However, the market trend reversed on Tuesday due to a profit booking witnessed in the most rallied technology stocks, as investors remain cautious ahead of the FOMC minutes and Nonfarm payroll data due later this week.
On the economic data front, the Manufacturing PMI shrank more than expected in December, according to the latest PMI data from S&P Global. The December Manufacturing PMI came to 47.9, down from 49.4 reported in November, the expectation was 48.2 by the economist. A decline in fresh orders was one of the reasons for weak PMI numbers.
US Stocks In News
The shares of Apple fell more than 3% after Barclays downgraded the stock to ‘underweight’ from ‘equal weight’ due to concern about the prolonged period of weak results and the potential for multiple expansions not being sustainable.
The electric vehicle maker Rivian Automotive fell more than 9% after the company missed market estimates for fourth-quarter deliveries due to high competition and a surge in interest rates weighed on demand for its electric vehicles.
After a poor performance in 2023, the shares of Moderna jumped more than 13% on the first trading session of 2024, as the stock was upgraded to outperform by Oppenheimer on Tuesday.
Crude Oil Prices
Crude oil prices are volatile on the first trading session of 2024, as traders closely monitor the latest updates in the Red Sea after clashes between US forces and Iran-backed militants based in Yemen.
The US WTI crude trades lower by 1.19% at $70.81 per barrel, while London-based Brent crude oil is also down by 0.95% at $76.27 per barrel.
Also, read – Global Stock Market Indexes End 2023 Positively: Weekly Analysis
Stock Market Prediction Next Week (1- 5 Jan 2024)
US Markets at Close
The US stock markets ended mixed on Tuesday, the first trading session of 2024, as Treasury yields climbed ahead of the crucial economic data and FOMC minutes later this week.
The Dow Jones Industrial Average (DJIA) erased early losses and closed slightly above the flat line, up by 25.50 points or 0.07% and finished at 37715.04. The S&P 500 index declined 27 points or 0.57% and closed at 4742.83. The tech-heavy Nasdaq Composite index extended early losses and was down 245.41 points or 1.63% and settled at 14765.94.
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