US Market Summary: Wall Street’s Slow Start to 2024 Continues

January 10, 2024

Tuesday’s trading session on Wall Street ended on a lower note, perpetuating the cautious atmosphere as the market’s slow commencement to 2024 persists. The U.S. stock market, still reeling from a vibrant rally at the end of 2023, is grappling with mixed sentiments, with tech stocks failing to maintain their previous session’s rebound and rising Treasury yields adding pressure on equities.

Key Index Performance: Dow, S&P 500, and Nasdaq

The Dow Jones Industrial Average (DJI) retreated by 0.42%, closing at 37,525.16 points. The broader S&P 500 index (SP500) fell by 0.15%, settling at 4,756.45 points and extending its annual losses to 0.28%. In contrast, the tech-heavy Nasdaq Composite (COMP.IND) managed a marginal gain of 0.09%, ending at 14,857.71 points, albeit tempered by performance warnings from tech giants like Samsung Electronics and Microchip Technology (NASDAQ: MCHP).

Sectoral Overview and Key Movers

The S&P 500 saw seven of its eleven sectors finishing in the red. Technology and Consumer Staples sectors led the gains. Notable movements were observed in Juniper Networks (NYSE: JNPR), which surged over 21% following reports of an acquisition by Hewlett Packard Enterprise (NYSE: HPE), and Match Group (NASDAQ: MTCH) climbing on news of a significant investment by activist investor Elliott.

Economic and Treasury Yield Updates

Economic indicators showed mixed signals. The National Federation of Independent Business reported an increase in small business optimism, while the goods and services trade deficit unexpectedly narrowed. Treasury yields saw an uptick, with the 30-year and 10-year yields rising to 4.19% and 4.02%, respectively.

Cryptocurrency and Regulatory News

The cryptocurrency market, particularly Bitcoin (BTC-USD), remained under scrutiny, hovering below the $47K mark amid anticipation of the U.S.’s first exchange-traded fund directly investing in the coin. However, the U.S. Securities and Exchange Commission (SEC) clarified that it had not yet approved such funds, contradicting speculative posts on social media. The SEC said Tuesday that a post sent from the agency’s account on the social platform X/Twitter announcing the approval of a long-awaited bitcoin exchange-traded fund was “unauthorized”, and that the agency’s account had been “compromised”.

Potential volatile market ahead with upcoming inflation data

As Wall Street continues its cautious journey into 2024, market participants remain vigilant, eyeing economic data especially the upcoming inflation data, corporate performance, and regulatory developments. The ongoing balancing act between optimism from the previous year’s rally and current market dynamics indicates a period of recalibration and careful strategy for investors and traders alike.

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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