On the first trading day of the year, stocks experienced a decline due to a slight rebound in interest rates and profit-taking by investors following an unexpectedly strong performance in 2023, where the S&P 500 had rallied by 24%.
The S&P 500 recorded a loss of 0.7%, while the Nasdaq Composite retreated by 1.8%. However, the Dow Jones Industrial Average managed to add less than 1%, equivalent to 21 points. It’s important to note that markets were closed on Monday for New Year’s Day.
The primary reason behind the pullback was the downgrade of Apple shares by Barclays, which led to a decrease in the member’s rating within the Magnificent 7 market leaders basket to ‘underweight’. On the flip side, the Dow’s losses were mitigated by the strength displayed in defensive stocks such as Johnson & Johnson and Merck.
Source (CNBC)
