US Market Summary: Tech Stocks Dip, Apple Downgraded and Diminishing Rate Hike Expectations

January 5, 2024

Treasury yields rose while major tech stocks, including the Nasdaq 100, declined ahead of the upcoming jobs report.

  • The Nasdaq 100 experienced a five-day losing streak, its longest since December 2022, primarily due to profit-booking in tech stocks.
  • Apple Inc. (NASDAQ: AAPL) faced a notable decline after a second downgrade, amid concerns about iPhone inventory levels.
  • The S&P 500 fluctuated but ultimately closed 0.3% lower. Similarly, the broader Nasdaq Composite also ended 0.5% lower.
  • The Dow Jones Industrial Average (DJI) finished nearly even, showing relative stability.
  • 10-year Treasury yields reached 4%, influenced by strong US hiring data and lower-than-expected jobless claims.
  • The recent data led to reduced bets on the Federal Reserve cutting interest rates soon.
  • Market focus is on the upcoming US jobs report and European inflation data to assess potential central bank rate decisions.
  • Expectations for a March rate cut by the Fed are diminishing, given a stable labor market and hints of persistently high rates from the Fed’s recent meeting.

Disclaimer: ProsperUs Head of Content & Investment Lead Billy Toh doesn’t own shares of any companies mentioned.

Billy Toh

Billy is deeply committed to making investment accessible and understandable to everyone, a principle that drives his engagement with the capital markets and his long-term investment strategies. He is currently the Head of Content & Investment Lead for Prosperus and a SGX Academy Trainer. His extensive experience spans roles as an economist at RHB Investment Bank, focusing on the Thailand and Philippines markets, and as a financial journalist at The Edge Malaysia. Additionally, his background includes valuable time spent in an asset management firm. Outside of finance, Billy enjoys meaningful conversations over coffee, keeps fit as a fitness enthusiast, and has a keen interest in technology.

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