2024-01-02 22:32:17
U.S. Stock Diary | Apple falls 3%, Nasdaq loses ground in New Year (REUTERS / Archyde.com)
Wall Street stocks were mixed on the first trading day of 2024, with the Dow rising slightly by 25 points and the Nasdaq falling 1.6%, dragged down by a significant decline in technology stocks. Apple was downgraded by a major bank, and its stock price fell 3.6%. Chip stocks were another disaster area, with AMD falling 6%. Tesla reported record-breaking fourth-quarter deliveries, and its stock price fell. Wall Street analysts are generally optimistic regarding stock market performance in 2024. U.S. Treasury bond interest rates rose, with the 2-year Treasury bond interest rate rising 7.6 points to 4.326%. The 10-year interest rate is near 4%, and the 30-year interest rate has risen above 4%.
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Market conditions on January 2 (Tuesday)
l The Dow Jones index rose 25.50 points, or 0.07%, to 37,715.04 points.
l The S&P 500 index fell 27.00 points or 0.57% to 4,742.83 points.
l The Nasdaq index fell 245.41 points, or 1.63%, to 14,765.94 points.
l New York January oil futures closed at US$70.38 a barrel, down US$1.27 or 1.78%.
l New York February gold futures closed at $2,070.30 an ounce, down 0.1%.
l The U.S. 10-year Treasury bond yield closed at 3.946%, up 8 points.
Barclays pointed out that due to sluggish iPhone sales, it downgraded Apple’s rating to “underweight” for the first time since 2019, with a target price of US$160. Apple closed down 3.6% at US$185.6. Chip stocks fell significantly, with AMD falling 6%, Intel falling 4.9%, Qualcomm falling 3%, and Nvidia, one of the seven technology giants, falling 2.7%.
In addition, Roth Capital analyst Craig Irwin, who has been bearish on Tesla for a long time, set the company’s stock price target at $85. However, Tesla just announced a record-breaking delivery of 494,989 electric vehicles in the fourth quarter, exceeding market expectations and achieving its 2023 goal. . Tesla closed slightly down 0.02% to $248.
Defensive stocks performed well, with Merck rising 3.9% and Johnson & Johnson rising 2%, helping the Dow maintain its upward trajectory.
Wall Street analysts are generally optimistic regarding the stock market in 2024.
Scott Rubner, managing director of Goldman Sachs, pointed out that global stock market inflows exceeded $172 billion last year, the lowest inflow since 2019. “Have global asset allocation managers been anticipating January’s move and putting money into equities? The answer is no,” Rubner wrote. At the same time, he pointed out that money market fund inflows last year reached US$1.34 trillion, exceeding the total of the previous three years. He believes that when there is a lot of money on the sidelines, it can be good news for the stock market.
“In the three months before the Fed’s first rate cut, the S&P 500 had never risen more than 11%. On average, performance was pretty lackluster,” wrote Joe Kalish, chief global macro strategist at Ned Davis Research. “But following interest rates begin to be cut, the stock market tends to rise for 6-7 months, with an average rise of regarding 12%.” He pointed out that in 12 easing cycles since 1970, the stock market has risen 11 times, with a median rise of The number exceeds 15%. The only decline occurred from 2001 to 2003 following the dot-com bubble burst.
Dan Ives of Wedbush Securities said that the continued benefits of artificial intelligence will push the Nasdaq to a new high in 2024. “While we can expect some volatility in the coming months given the Fed’s comments and macro factors, we believe technology stocks will rise 25% in 2024 and the Nasdaq will reach the 20,000-point level, This is our bull case scenario because Wall Street still greatly underestimates the speed of this trend. The AI monetization cycle is unfolding among related companies.”
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