US stocks decline at the opening of 2024 trading: The prices of US stocks and Treasury bonds fell in the first trading sessions of 2024
as traders reduced their expectations regarding a reduction in interest rates.
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Performance of US stocks
The Nasdaq 100 index fell by 1.7%, recording the largest daily decline in two months,
coinciding with the decline in the share prices of major technology companies that performed excellently last year.
Apple’s stock price fell after Barclays Bank warned of a decline in demand for iPhone devices,
and shares of Nvidia and Meta Platforms also fell, while the yield on 10-year Treasury bonds for Basal rose to 3.94%.
The rise of strong stocks stopped at the opening of trading sessions in the year 2024
after the S&P 500 index added approximately $8 trillion in the year 2023.
“In the new year, portfolio managers accelerated deferred tax-driven
gains following impressive year-end results across their portfolios,” said Louis Navellier of Navellier & Associates. “Profit-taking and repositioning.”
While Tom Lee of Fundstrat Global Advisors was one of the few who expected a rise last year,
he still believes that 2024 will be the best year for stocks as they are expected to achieve better results,
noting that the first five days of January It is very important to determine the direction of stocks.
Stock pause
He added to me that if the performance of stocks in the first five days is bad,
means that his expectations will not be met, and Lee expects the price to reach a new record in January,
then in the first half of this year. there has been a bent closer to consolidation
John Stoltzfus, chief investment strategist at Oppenheimer Asset Management,
is also optimistic about trading in 2024, although he believes US stocks deserve a break.
John added: “It would be normal and normal for the market to close
for a short period to accommodate the size of the recovery in the fourth quarter.
In fact, for us, a temporary market halt seems logical given the sudden rise in stock prices.”
John indicated that stocks will resume their upward momentum in the upcoming earnings season.
The VIX 500 volatility index rose about 6%, one of the highest gains since Federal Reserve Chairman Jerome Powell’s
decision last month to reduce monetary policy. It is worth noting that the fear indicator on Wall Street remains low.
Gradual decline
Traders are waiting for the release of minutes from the Federal Reserve’s latest meeting,
which will take place on Wednesday. A more formidable tone is expected, said Ian Lingen of BMO Capital Markets.
“If we see a sudden shift toward monetary easing, although unlikely,
there will be a backlash as markets move away from simply trusting the Fed’s words and adopt a more sceptical approach,”
the strategist wrote.
Traders will also await Wednesday’s jobs report and Friday’s nonfarm payrolls report for signs of labour market weakness.
“If Powell is right that inflation can continue to slow without a sharp rise in unemployment,
then gains in stocks and bonds are justified,” Bloomberg Economics said.
“But if conventional economic reports persist, slowing price inflation will not be easy,
and the impact of the Fed’s rate promenades on the work market is about to peak,” economists led by Anna Wong wrote.
International Monetary Fund head Kristalina Georgieva told CNN International
that the US economy is “definitely” headed toward a gradual decline caused by the Federal Reserve’s “decision” to curb inflation.
Market performance
On the other hand, the US dollar rose by 0.7%, causing almost all rising market currencies to weaken against the US dollar.
The yen fell as investors focused on the impact of Monday’s earthquake in Japan.
On Tuesday, Bitcoin prices topped $45,000 for the first time in nearly two years.
Amid expected growth, the U.S. is expected to approve the launch
of exchange-traded funds that invest directly in major currencies,
while oil prices have fallen, giving up early gains as shipping traffic in the Red Sea remains disrupted.
West Texas Intermediate crude oil is trading at $70 per barrel.
In Asia, market sentiment was affected by Chinese President Xi Jinping
rarely acknowledged the domestic challenges facing his country, acknowledging that
some companies and citizens will face difficult times in 2023.
Indices Performance
The S&P 500 index fell 0.6%.
The Nasdaq 100 fell 1.7%.
The Bloomberg Dollar Spot Index increased 0.7%.
US stocks decline at the opening of 2024 trading
