On the first trading day of the year, stocks experienced a decline due to a slight rebound in interest rates and investors opting to withdraw some funds following an unexpectedly strong performance throughout 2023, where the S&P 500 recorded a remarkable 24% rally.
Leading the pullback were Apple shares, which faced a downgrade from Barclays, resulting in their classification within the Magnificent 7 market leaders basket being lowered to an underweight rating.
It is worth noting that markets remained closed on Monday to observe New Year’s Day.
The year 2023 concluded on a high note, with the stock market witnessing a notable surge. The S&P 500 marked a nine-week winning streak, ending the year on a positive trajectory and achieving its best weekly performance since 2004. This remarkable momentum in risk assets was facilitated by a resilient economy, cooling inflation, and the Federal Reserve’s indication of halting rate hikes while predicting future rate cuts later in the year. Additionally, the market endured challenges posed by a regional banking crisis, as well as ongoing conflicts in Ukraine and the Middle East.
Source (CNBC)
