Market Recap (1/7/24)

Market Recap of the Week of January 2, 2024 - January 5, 2024

Source: Apple Stocks Application

Overall Market Trends:

The new year started off on a bad note with investors as all major indexes were negative. The New York Stock Exchange fell 45 points (0.27%), the S&P 500 decreased 46 points (0.97%), the technology-heavy NASDAQ dropped 318 points (2.14%), and the Dow Jones Industrial Average dropped 175 points (0.46%). This marked the end of the eight-week streak of weekly gains for these major indexes. The decrease this week was mostly due to the release of the Fed’s minutes from the December meeting, concerns that the Fed may not cut rates as soon as expected, new data, and heightened Middle East tensions.

Barclays analyst, Tim Long, downgraded Apple stock, suggesting that investors sell. iPhone demand has diminished as sales have proven to be weak and Long believes that this demand and sales will carry into the iPhone 16’s release. Apple, one of the 30 companies listed in the Dow Jones Industrial Average, dropped over 6% this past week, one of the factors in the Dow’s drop.

Construction spending data released on Tuesday showed that construction spending was below forecasted - up 0.4% as opposed to the projected 0.6%. Construction spending is a good indicator of how much is being spent on projects such as housing and highways. It is also an indicator of how the GDP is doing. Although construction spending was indeed up, it did not meet its expectations and therefore the GDP is growing slower than expected, supporting the notion of a slowing economy.

On Wednesday, January 3, the minutes from the Fed’s December policy meeting were released. They showed that nearly all central bank officials forecasted rate easing in 2024. However, these predictions were accompanied by an unusually high level of uncertainty. The minutes indicated that further rate hikes may not be out of the picture just yet. Prior to the release, investors believed that there would be up to seven quarter-point rate cuts in 2024. Yet policymakers have indicated that there could be as little as three quarter-point rate cuts. The probability of a rate cut occurring within the next two Federal Reserve policy meetings has substantially diminished.

Past Earnings Report:


Looking Towards the Future

Future Earnings Reports:

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Market Recap (12/31/23)