Challenging Start to 2024 for US Markets as Tech Woes and Geopolitical Tensions Weigh
Bumpy Start for US Stocks in 2024: Tech Woes and Global Developments Impact Market Sentiment
US stock futures are facing a downward trajectory, signaling a challenging start to 2024 after a successful year that narrowly missed pushing the S&P 500 to a new record high.
Futures for the S&P 500 (^GSPC) experienced a 0.6% dip, accompanied by a 0.5% decline, equivalent to approximately 180 points, for Dow Jones Industrial Average futures (^DJI). Additionally, contracts associated with the Nasdaq 100 (^NDX) witnessed a 0.9% decrease.
The bullish momentum witnessed in stocks during the last two months of 2023 hit a snag on Friday. Despite closing the year with robust gains, the S&P 500 secured its 9th consecutive weekly win—a feat not seen since 2004—edging closer to surpassing its all-time closing high of 4,796.56.
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The technology sector faced setbacks as Barclays analysts downgraded Apple's stock, expressing apprehensions about the demand for new iPhones. Consequently, Apple (AAPL) shares saw a 1.7% decline, contributing to the overall slide in tech stocks.
Investors are closely monitoring economic updates this week, with particular attention on the December jobs report scheduled for Friday. This report is anticipated to influence the Federal Reserve's decisions, as market participants are banking on swift and substantial interest-rate cuts in 2024.
On the geopolitical front, tensions escalated as Iran deployed a warship to the Red Sea in response to the US Navy's actions against three Houthi boats over the weekend. Oil prices responded with a climb of over 2%, with West Texas Intermediate crude (CL=F) and Brent crude (BZ=F) futures both experiencing gains.
In the cryptocurrency realm, bitcoin prices surged by more than 3%, surpassing the $45,000 mark for the first time since early 2022. This uptick is attributed to growing optimism surrounding the potential approval of a spot bitcoin ETF by the SEC. Pre-market trading also saw crypto stocks, including Marathon Digital (MARA), rebounding with a nearly 12% increase, recovering from recent losses.
Also Read: Stock Market News Update: Wrapping Up 2023 with Surprising Gains on Wall Street
