After the S&P 500 ended a five-week winning streak at a new high for 2023, stock futures fell.
The Dow Jones Industrial Average futures fell 90 points, or 0.3%, on the day. Nasdaq 100 futures fell 0.5%, and S&P 500 futures down 0.4%.
Gold and bitcoin had a rise to begin the week while stocks remained stagnant. Gold hit its highest nominal intraday level ever, while Bitcoin surpassed $41,000 to record a 19-month high.
The rise in bitcoin caused Marathon Digital and Riot Platforms to soar by more than 14% and 12%, respectively. More than 9% and 8%, respectively, were won by Coinbase and Microstrategy.
Following the announcement that it has agreed to pay $1.9 billion to acquire rival Hawaiian Airlines, shares of Alaska Airlines fell more than 12% in premarket trade. With this move, both carriers are attempting to extend their reach throughout the West Coast.
The premarket action on Monday comes after a period of high stock prices.
The broad S&P 500 saw its best closing price since March 2022 on Friday, increasing its gains for the year to about 20%. The blue-chip Dow is up 9.4% on the year and just enjoyed its first winning run of five weeks since 2021. In 2023, the tech-heavy Nasdaq Composite had a 37% increase.
The increase in stock prices since October can be attributed to investors’ growing wagers that the Federal Reserve would begin lowering interest rates in 2019. Despite efforts by Fed Chairman Jerome Powell to temper expectations of rate cuts by stating that it is “premature” to anticipate policy easing, investors held onto this notion last week.
The 30-stock Dow had its greatest month since October 2022 in November. These were the largest monthly increases for the S&P 500 and Nasdaq Composite since July 2022.
Considered unsustainable by some investors, the rally
The founder of Vital Knowledge, Adam Crisafulli, stated in a note that “things are really overdone at the moment.” “The discussion about earnings, the Fed, GDP, and inflation is far too simple, straightforward, and binary.”
In the meantime, John Stoltzfus, chief investment strategist at Oppenheimer, pondered the potential implications of a late 2023 surge on the market in 2024.
Source (CNBC)
