Tuesday saw a decline in the S&P 500 and the Dow Jones Industrial Average as the recent Wall Street rally fizzled out.
The 30-stock Dow finished at 36,124.56, down 79.88 points, or 0.22%. To 4,567.18, the S&P 500 saw a 0.06% decrease. Technology companies outperformed, as the Nasdaq Composite ended the day at 14,229.91, up 0.31%.
GitLab surged by 11.5 percent on the open-source software development platform’s solid Q4 outlook and quarterly revenue beat. After the Chinese manufacturer of electric vehicles revealed narrowing losses in the third quarter, Nio increased by 1.5%.
All three indices saw a losing session on Monday, raising concerns about whether the market had risen too quickly. Tuesday’s changes come after that. The three averages saw five straight weeks of increases before Monday’s decline.
The three indexes are still up year over year and quarter despite their recent performance. That emphasises how strong the market’s surge was before this trading week.
The excellent success of the stock market in the penultimate month of 2023, Rhys Williams, chief strategist at Spouting Rock, stated, “Today is just a little bit of an unravelling of the trend of November.” “It’s too early to say that the risk-on trade is done for good.”
The US 10-year Treasury yield dropped below the crucial 4.2% mark on Tuesday, causing stocks to recover from their session lows. Data indicating a softening of the labour market preceded the move.
With the release of the data, technology shares saw a particularly strong surge, which helped the Nasdaq close the session higher. Tech giants Apple and Nvidia both saw notable gains of more than 2% in their prices.
Following its bucking of the downward trend on Monday, the Russell 2000 lost more than 1% on Tuesday. Yet, during the last month, the small-cap index has increased by more than 5%, igniting expectations of an impending Federal Reserve interest rate decrease and a strengthening market boom.
Source (CNBC)
