Tech Drags On Wall Street As 2024 Kicks Off; Dollar and Treasury Yields Surge: What's Driving Markets Tuesday?
Portfolio Pulse from Piero Cingari
Wall Street began 2024 with declines in major indices, particularly the S&P 500 and Nasdaq 100, dragged down by the tech sector. Tesla (TSLA) remained flat, while Apple (AAPL) and NVIDIA (NVDA), along with semiconductor ETFs like SOXX, saw significant drops. The decline in tech stocks was partly due to a White House request to limit chip exports to China. The dollar and Treasury yields surged, while commodities had a mixed day. Bitcoin (BTC) rose, anticipating a Bitcoin ETF approval. Sector ETFs like SPY, DIA, and QQQ moved in line with their respective indices, while XLV outperformed and XLK lagged. Biotech stocks and ETFs like IBB performed well, whereas semiconductor ETFs like SMH declined. Moderna (MRNA) surged after an Oppenheimer upgrade, while Rivian (RIVN) and cruise lines like NCLH and RCL saw stock price declines.
January 02, 2024 | 6:29 pm
News sentiment analysis
Sort by:
Ascending
NEGATIVE IMPACT
Apple shares tumbled by 3% following a downgrade from Barclays, marking its worst session since early September.
The downgrade from Barclays is a significant negative catalyst for Apple's stock, likely leading to short-term bearish sentiment.
CONFIDENCE 80
IMPORTANCE 80
RELEVANCE 90
NEGATIVE IMPACT
NVIDIA Corp. shares dropped 2.8% amid broader semiconductor industry concerns due to potential export restrictions to China.
The potential export restrictions to China are a direct threat to NVIDIA's business, likely causing short-term negative impact on the stock.
CONFIDENCE 75
IMPORTANCE 75
RELEVANCE 85
NEGATIVE IMPACT
Invesco QQQ Trust (QQQ) fell 1.4% to $403.81, reflecting the Nasdaq 100's decline, particularly impacted by the tech sector.
QQQ's decline is a direct result of the underperformance in the tech sector, which heavily influences the Nasdaq 100 index.
CONFIDENCE 80
IMPORTANCE 70
RELEVANCE 80
NEGATIVE IMPACT
Rivian Automotive (RIVN) saw a nearly 10% decline in stock price as Q4 deliveries fell short of analyst expectations.
Rivian's stock price drop is a direct response to the disappointing Q4 delivery numbers, which could impact investor confidence.
CONFIDENCE 80
IMPORTANCE 80
RELEVANCE 85
NEGATIVE IMPACT
VanEck Semiconductors ETF (SMH) fell 2.2%, reflecting the negative sentiment in the semiconductor industry.
SMH's decline is in line with the broader semiconductor industry's challenges, particularly regarding export restrictions.
CONFIDENCE 75
IMPORTANCE 70
RELEVANCE 75
NEGATIVE IMPACT
iShares Semiconductor ETF (SOXX) experienced a 2.8% decline, in line with the drop in semiconductor stocks like NVIDIA.
SOXX's decline reflects the broader semiconductor industry's reaction to the potential export restrictions, indicating a negative short-term outlook.
CONFIDENCE 75
IMPORTANCE 70
RELEVANCE 80
NEGATIVE IMPACT
SPDR S&P 500 ETF Trust (SPY) was down 0.4%, mirroring the decline in the S&P 500 index.
SPY's movement is directly tied to the S&P 500, and its decline is a natural reflection of the index's performance.
CONFIDENCE 80
IMPORTANCE 60
RELEVANCE 70
NEGATIVE IMPACT
Technology Select Sector SPDR Fund (XLK) lagged, dropping 2.4%, in line with the broader tech sector's performance.
XLK's performance is closely tied to the tech sector, and its decline is consistent with the overall tech downturn.
CONFIDENCE 80
IMPORTANCE 75
RELEVANCE 80
NEUTRAL IMPACT
Tesla remained flat despite the broader tech sector decline, showing resilience on the first trading day of 2024.
Tesla's flat performance in the face of a tech sector decline could indicate investor confidence or a temporary pause in volatility.
CONFIDENCE 70
IMPORTANCE 50
RELEVANCE 50
POSITIVE IMPACT
SPDR Dow Jones Industrial Average ETF (DIA) saw a slight increase of 0.2%, bucking the trend of declines in other indices.
DIA's positive performance, despite a general market downturn, suggests a divergence in investor sentiment towards the Dow Jones index.
CONFIDENCE 70
IMPORTANCE 50
RELEVANCE 60
POSITIVE IMPACT
iShares Biotechnology ETF (IBB) was up 2.3%, showcasing the biotech industry's outperformance on the day.
IBB's gain indicates a positive investor sentiment towards the biotech sector, which may be seen as a growth opportunity.
CONFIDENCE 70
IMPORTANCE 60
RELEVANCE 65
POSITIVE IMPACT
Moderna Inc. (MRNA) rallied over 16% after an Oppenheimer upgrade, marking its best session since late 2022.
The significant surge in Moderna's stock price is likely due to the positive impact of the Oppenheimer upgrade and improved sales outlook.
CONFIDENCE 85
IMPORTANCE 85
RELEVANCE 90
POSITIVE IMPACT
Health Care Select Sector SPDR Fund (XLV) outperformed, rising by 1.3%, indicating sector strength amidst a down market.
XLV's rise in a down market suggests investor confidence in the healthcare sector, potentially due to defensive stock characteristics.
CONFIDENCE 75
IMPORTANCE 65
RELEVANCE 70