The Nasdaq index fell three times in a row. At one point, the Dow turned up and rebounded to a record high. After Barclays downgraded its rating, Apple fell more than 4%, closed down more than 3%, the chip stock index fell more than 3%, AMD fell 6%, and Intel fell nearly 5%; the China Securities Index fell more than 3%, JD fell nearly 6%, and Ali and Baidu fell more than 3%.
The yield on ten-year British bonds rose by more than 10 basis points, the biggest increase in nearly five months; the yield on two-year US bonds rose by 10 basis points during the intraday period, and the 10-year yield rose to a two-week high. The US dollar index recorded its biggest increase in nearly ten months. The offshore RMB fell more than 400 points in the intraday period and fell to 7.15.
Crude oil went negative for four consecutive days to a low of more than two weeks. After rising more than 2% in the intraday period, it turned down more than 1%. Luntong fell three times in a row to a two-week low; gold narrowly closed higher, stopping two consecutive declines.
On the first trading day of 2024, US bonds and most US stock indexes “went nowhere.”
Investors cut their bets on major central banks cutting interest rates this year, and US bonds have joined the global bond market sell-off camp. Interest rate sensitive two-year US Treasury yields rose 10 basis points in the intraday period. The benchmark 10-year US Treasury yield once rose nearly 10 basis points to a two-week high. Later, as crude oil futures narrowed and turned down, the yield increase narrowed. The review said that the decline in the bond market reflects that investors are skeptical about the degree of central bank easing reflected in money market pricing. The Federal Reserve and other central banks have hinted that interest rate hikes may be completed, but they are unwilling to give up the fight against inflation too soon.
Major US stock indexes, which surged in 2023, opened lower across the board. Technology stocks led the downside and dragged down the market, while rising energy, healthcare, and industrial stocks offset some of the impact of technology stocks, and the Dow turned upward in the intraday period. The chip stock index fell more than 3% in the intraday period; after Barclays downgraded its stock rating to a lower share due to expected weak iPhone demand, Apple recorded its biggest decline in five months. It once fell more than 4% in the intraday period, leading the decline in blue chip technology stocks. 2023 ended brilliantly, and China's securities, which outperformed the market, generally declined.
At a time when short-term US bond prices led the decline and yields led the rise, the US dollar index, which fell in 2023, rose strongly in the intraday period, making it the biggest daily increase since early March. Non-US currencies fell sharply. The euro and pound fell to low levels for more than a week, and the offshore renminbi fell more than 400 points and fell below 7.15 in the intraday period, falling below the nearly seven-month intraday high set by recovering 7.09 last Friday. Cryptocurrency continues to rise in 2023, and investors are optimistic that the US Securities Regulatory Commission will approve the listing of a Bitcoin spot ETF this month. Bitcoin will reach 45,000 US dollars in intraday trading for the first time in 21 months.
Under the pressure of a sharp rise in the US dollar, basic metals such as copper fell sharply. Gold spot and futures both turned down during the session, and futures closed slightly higher, barely stopping the trend of continuing to fall below the historical high level of closing. International crude oil failed to rebound successfully. Yemen's Houthis also attacked ships in the Red Sea last weekend. According to CCTV reports, Iran's “Elburz” destroyer entered the Red Sea on Monday. Iran's foreign minister held talks with a Houthi spokesperson on the same day. Crude oil rose by more than 2% in the intraday period, and oil prices continued to fall as the US dollar strengthened. According to intraday media, OPEC+ plans to hold a Joint Ministerial Supervisory Committee (JMMC) meeting in early February. The drop in oil prices widened, taking back all the gains and turning back down.
At one point, the Nasdaq index fell nearly 2%, and the Dow Index closed down more than 3% in the intraday period. Apple, the chip stock index, and the China General Stock Index closed down more than 3%
The three major US stock indexes collectively opened lower, with mixed intraday performance. The Nasdaq Composite Index fell more than 1.9% in early trading, and the S&P 500 index fell more than 0.8%. Later, some of the declines narrowed, and the NASDAQ still fell more than 1% in midday trading. At the beginning of the session, the Dow Jones Industrial Average fell more than 190 points and fell by more than 0.5%. Since then, it has generally rebounded. At the end of early trading, it completely escaped its decline. At the end of the day, when it hit a daily high in midday trading, it rose slightly more than 100 points and nearly 0.3% during the day.
In the end, of the three major indices, only the Dow closed higher, up 25.5 points, or 0.07%, to 37715.04 points, breaking the all-time high for closing last Thursday. The NASDAQ closed down 1.63% to 14765.94 points, falling three consecutive trading days to its lowest level since December 13. S&P closed down 0.57% to 4742.83 points, down two consecutive trading levels since December 20.
The tech-heavy Nasdaq 100 index fell 2.2% in midday trading and closed down 1.68%. It fell three consecutive days to its lowest level since December 14, and both recorded the biggest decline since October 3. The Nasdaq Technology Market Capitalization Weighted Index (NDXTMC), which measures the performance of technology components in the Nasdaq 100 Index, closed down 2.63%, falling two consecutive times to a low level since December 12. The small-cap stock index Russell 2000, which is mainly value stocks, turned up in early and mid-day trading and closed down 0.7%, falling to a low level since the 3rd until December 20.
Among the constituent stocks of the Dow Index, two pharmaceutical companies, MSD and Amgen, led the way, closing up nearly 3.9% and 3.3%, respectively. Intel, which closed down about 4.9%, led the decline, while Apple and Boeing, which fell more than 3%, led the decline.
Among the major sectors of the S&P 500, a total of five were closed down on Tuesday. IT, where Apple and chip stocks are located, led the decline by nearly 2.6%, industry fell nearly 1%, Meta and Google's communications services and Amazon's non-essential consumer goods fell by more than 0.9%, materials fell 0.2%, while energy, healthcare, utilities, and essential consumer goods rose more than 1%, real estate rose more than 0.9%, and finance, which had the smallest increase, rose nearly 0.4%.
Leading technology stocks fell sharply in the intraday period. Tesla fell more than 1.6% after turning down at the beginning of the session. It turned up more than once in early trading and midday trading, closing down slightly, falling for three days in a row, breaking its closing low since December 13.
Among the six major FAANMG technology stocks, the rating was downgraded by Barclays for the first time since 2019, and the target price was slightly lowered to $160, which means that the next year's stock price will drop 17% from the previous trading day on Friday, Apple opened and fell nearly 2.8%. It fell about 4.5% in the midday session, closing down 3.6%, the biggest drop since August 4, 2023, and the low level from November 9; Netflix closed down about 3.8%, falling continuously from 3rd to December 12th; Facebook parent company Meta closed down 2.2% from February to December 12 Low since the 18th; Microsoft, which has been rising for 2 consecutive days to a high position since November 30, closed down nearly 1.4%, falling back to its low level since December 20; Amazon closed down 1.3%, falling 2 times to a low level since December 14; Google's parent company Alphabet closed down nearly 1.1%, falling 4 days in a row to its low level since December 19.
Chip stocks fell after two consecutive days of overall gains, outperforming the market. The Philadelphia Semiconductor Index and semiconductor industry ETF SOXX closed down nearly 3.7% and 3.6%, respectively, and fell to low levels since December 20. At the close, Arm fell more than 8%, AMD fell about 6%, the highest decline among the NASDAQ 100 constituent stocks. Intel and Applied Materials fell nearly 5%, Ram Research fell more than 4%, Micron Technology and Kelei fell more than 3%, Qualcomm fell 3%, and Nvidia fell 2.7%.
Most AI concept stocks continued to fall. BigBear.ai (BBAI) closed down more than 6%, Palantir (PLTR) fell more than 3%, Adobe (ADBE) fell 2.8%, and SoundHound.ai (SOUN) turned down in early trading and then fell 1.9% in midday trading, while C3.ai (AI) rose more than 2% to close 0.1% after turning up in early trading.
Including Apple, Microsoft, Alphabet, Meta, Amazon, Nvidia, and Tesla, the seven major technology stocks generally fell back to the level of three weeks ago on Tuesday, leveling off the three gains.
Generally, popular Chinese securities that have been rising over the past few days have retreated and outperformed the general market. The Nasdaq Golden Dragon China Index (HXC) closed down 3.5%, ending four days of continuous gains and falling to the closing high since November 28 set last Friday. KWEB and CQQQ closed down 3.4% and 1.7%, respectively. On Monday, the three new car builders that announced their December deliveries for the full year of 2023 fell sharply. At the close of the market, NIO Auto and Ideal Auto fell by more than 7%, and Xiaopeng Motor fell nearly 3.8%. Among other individual stocks, after Baidu terminated the acquisition of its live streaming business, Huanju Times closed down nearly 15%. At the close, Tiger Securities fell more than 6%, JD and Futu Holdings Ltd. fell nearly 6%, Jinshanyun fell more than 5%, Station B fell more than 4%, Alibaba, Baidu, and Douyu fell more than 3%, Tencent Fundu fell about 1%, NetEase fell more than 0.7%, and Pinduoduo fell nearly 0.5%.
The bank stock index, which fell last Friday, rebounded. The overall banking index KBW Bank Index (BKX) closed up more than 0.9%, breaking the high since March 8 set last Thursday; the regional banking index KBW Nasdaq Regional Banking Index (KRX), which fell to a low level since December 21 last Friday, closed up nearly 0.2%, and the regional bank stock ETF SPDR S&P Regional Bank ETF (KRE) rose more than 0.3%.
Among the most volatile individual stocks, pharmaceutical and biotech company Moderna (MRNA) closed up 13.1% after Oppenheimer raised the rating to overrated and is expected to boost sales growth starting in 2025 by releasing multiple products within the next 12 to 18 months; after J.P. Morgan was optimistic about its accelerated profit growth and added the individual stock to its analysts' watch list, Tapestry (TPR), the parent company of luxury brand Coach, rose more than 4% to close 3.7% in the intraday period; while Bank of America will downgrade the rating from buy to 3.7% due to increased competition After low distribution, prescription drug discount platform GoodRx (GDRX) closed down 16.1%; electric vehicle manufacturer Rivian (RIVN), whose deliveries fell 10.2% month-on-month in the fourth quarter, closed down about 10%.
The pan-European stock index failed to get off to a good start in 2024 and declined slightly. Technology stocks were also the main drivers. The European Stoxx 600 Index has left its closing high since January 20, 2022, which was set last Friday. Stock indices of major European countries had mixed ups and downs. German, Italian and Western stocks closed higher for two consecutive trading days, while French stocks and British stocks, which rebounded last Friday, fell.
Among various sectors, technology led the decline by 1.7%, due to the fact that European stocks of lithography giant ASML closed down nearly 2.6% after the Dutch government restricted exports of some of its products to China. Meanwhile, after Italian Economy Minister Giancarlo Giorgetti said that the government's work to sell the bank's shares was progressing smoothly, the Bank of Italy's Banca Monte Dei Paschi Di Siena (BMPS) surged 6.1%, bolstering the banking sector to rise 1.6%. Among other individual stocks, Red Sea shipping vessels continued to be attacked, causing investors to expect freight rates to rise further, and shipping giant Maersk closed up about 6.4%.
The yield on 10-year British bonds rose by more than 10 basis points, and the yield on the two-year US Treasury rose by 10 basis points, and the 10-year yield rose to a two-week high
The overall price of European treasury bonds fell for three consecutive trading days, and yields rebounded for three consecutive days. By the end of the bond market, the yield on the UK 10-year benchmark treasury bond closed at 3.63%, rising about 11 basis points during the day, the biggest daily increase since August 11. US stocks were close to 3.70% before the market, breaking the high level since December 19; the 2-year British bond yield closed at 4.07%, rising about 10 basis points during the day, and US stocks were close to 4.11% before the market, setting a new high of more than a week; the yield of the benchmark 10-year German treasury bond closed at 2.06%, rising about 5 basis points during the day. European stocks had risen 2.11% in early trading, refreshing the 2-year German position since December 15; Bond yield collection The report was 2.44%, up about 6 basis points during the day. European stocks rose above 2.47% in early trading, setting a new high of more than a week.
The yield on the US 10-year benchmark treasury bond was below 3.92% in early Asian trading and continued to rise thereafter. US stocks rose above 3.97% before the market, breaking the intraday high level since December 15, rising by more than 9 basis points during the day, then falling somewhat. US stocks fell below 3.92% in early trading, about 3.93% at the end of the bond market, and rose by about 5 basis points during the day.
The 2-year US Treasury yield, which is more sensitive to interest rate prospects, fell 4.29% to a new low in early Asian trading. US stocks rose 4.35% before the market and rose by about 10 basis points during the day, breaking the high level since last Tuesday. By the end of the bond market, it was about 4.32%, rising about 7 basis points during the day, and rebounded after falling back last Friday.
The US dollar index rose three times in a row, the biggest daily gain in nearly ten months, Bitcoin rose above 45,000 US dollars in the intraday period and hit a 21-month high
The ICE US Dollar Index (DXY), which tracks the exchange rate of the US dollar against a basket of six major currencies including the euro, remained strong throughout the day. European stocks rose above 102.00 in the intraday period, and US stocks rose above 102.20 in the intraday period, breaking the intraday high level since December 21, and rose more than 0.9% during the day.
By the close of the US stock market on Tuesday, the US dollar index was above 102.20, up nearly 0.8% during the day, the biggest daily gain in nearly ten months since March 7; the Bloomberg US dollar spot index, which tracks the exchange rate of the US dollar against ten other currencies, rose about 0.7%, at the same time high since December 20, and the US dollar index rose for three consecutive days.
Among non-US currencies, the yen declined for three consecutive days. The dollar rose above 142.20 against the European stock market and rose more than 0.9% during the day, far from the low level since the end of July when it fell below 140.30 last Thursday; EUR/USD approached 1.0940 in early trading and fell more than 0.9% during the day; GBP/USD fell below 1.2620 in early trading, falling more than 0.8% during the day, all breaking the low since December 21.
The offshore renminbi (CNH) rose to a new high of 7.1102 against the US dollar in early Asian trading on Tuesday, and continued to decline after turning down. US stocks fell to 7.1545, down 442 points from the daily high, falling from the high level since June 2, when rising above 7.09 on Friday. At 5:59 on January 3, Beijing time, the offshore renminbi was 7.1,491 yuan against the US dollar, down 233 points from the end of the New York session last Friday, December 29.
Crude oil declined for four consecutive days to a low of more than two weeks, rising more than 2% in the intraday period, then falling more than 1%
International crude oil futures turned lower in the intraday session on Tuesday. US WTI crude oil rose above 73.60 US dollars when the US stock market hit a new daily high. Brent crude oil rose above 79 US dollars when it hit a new daily high in the European stock market. It rose more than 2.6% during the day, and continued to decline thereafter. US stocks turned down in early trading, and the decline widened to more than 1% in mid-day trading.
WTI crude oil futures for February closed down 1.78% to 70.38 US dollars/barrel; Brent crude oil futures for March closed down 1.49% to 75.89 US dollars/barrel. Both US oil and US oil closed at a new low since December 15 last Friday and then set a new closing low since December 13.
US gasoline and natural gas futures continued to have mixed ups and downs. NYMEX February gasoline futures, which ended two consecutive declines on Friday, closed down 0.5% to $2.0949 per gallon, and began to approach the low since December 13, which had been refreshed last Thursday; NYMEX February natural gas futures, which stopped two consecutive years on Friday, closed up 2.15% to $2.5680 per million British thermal units, breaking the high since December 5 set last Thursday.
Luntong fell three times in a row to a two-week low, and gold barely closed up and stopped falling for two consecutive years
London basic metals futures declined overall on Tuesday. Luntong fell three consecutive trading days to a two-week low. Lunnickel also fell for three days, and both lun lead and zinc, which had been falling for 2 days, fell to their lowest levels in a week. Lunzine fell to a nearly eight-month high set last Friday.
New York gold futures reached a new daily high of 2088.1 US dollars before the European stock market, rising nearly 0.8% during the day. US stocks turned down in early trading, reaching a low of 2064.3 US dollars on the new day. They fell nearly 0.4% during the day, and turned higher at the end of early trading.
In the end, COMEX gold futures closed slightly up 0.08% to 2073.4 US dollars/ounce in February, barely stopping two consecutive declines, and did not continue to fall below the historic closing high set by rising above $2,090 last Wednesday.
Spot gold reached a new daily high of 2,079 US dollars in early trading. It rose nearly 0.8% during the day, then fluctuated and fell. US stocks turned down in early trading. US stocks were below 2,060 US dollars at the close, falling more than 0.2% during the day.
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