U.S. stocks start 2024 in losses as large-cap tech stocks drag down overall market

• U.S. stocks fell in their 2024 trading debut on Tuesday, with megacap tech stocks falling the most.

• A spike in interest rates dragged the market lower on Tuesday, but delays in trading for tax purposes may also have played a role.

• Investors are also waiting to see how many rate cuts the Fed will make this year.

U.S. stocks were mostly lower on the first trading day of 2024, with mega-cap tech stocks pushing down the S&P 500 and Nasdaq 100. Meanwhile, gains in health care stocks contributed to a slight rise in the Dow Jones Industrial Average.

Apple’s stock price fell more than 4% after Berkeley downgraded the company, shaving more than $100 billion off its market valuation.

Tax-driven trading likely drove much of Tuesday’s selloff, as investors postponed taking investment gains until after the 2023 calendar year-end deadline and bond yields rose slightly. be.

As we head into the new year, investors are keeping an eye on how much the Federal Reserve will cut interest rates. Market futures currently suggest the Fed will cut rates by up to six 25 basis points this year, but the Fed only expects to cut rates three times.

The December jobs report, released on Friday, will help inform investors on how to view interest rates. A weak report could reinforce the idea that the Fed needs to cut rates more aggressively, and vice versa, a strong report.

Here are the U.S. indices as of Tuesday’s close at 4 p.m.

Here’s what else happened today:

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In Commodities, Fixed Income and Cryptocurrencies:

• West Texas Intermediate crude oil fell 1.72% to $70.42 per barrel. Brent crude oil, the international benchmark, fell 1.36% to $75.99 per barrel.

• Gold fell 0.19% to $2,067.80 per ounce.

• The 10-year Treasury yield rose 8 basis points to 3.943%.

• Bitcoin rose 1.48% to $44,853.

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