Tech-heavy Nasdaq drops for fifth consecutive session, while Dow inches up
The US stock market saw mixed trading on Thursday, with the Dow Jones Industrial Average edging higher while the S&P 500 and Nasdaq ended the day in the red. Tech stocks continued to struggle, dragging down the Nasdaq for the fifth consecutive session. Shares of major tech companies such as Apple, Amazon, and Microsoft dipped, contributing to the broader decline in the tech-heavy index. Apple, in particular, had a tough week, facing downgrades from both Barclays and Piper Sandler. The company’s stock dropped 1.2% on Thursday, closing at $TKTKT per share.
Shares of Apple, Amazon, and Microsoft decline as tech stocks struggle in 2024
Tech stocks have had a rough start to the new year, weighing down the overall performance of the market. Shares of Apple, Amazon, and Microsoft all fell during Thursday’s trading session, adding to the negative sentiment surrounding the tech sector. Apple faced downgrades from two major Wall Street firms, which further dampened investor confidence in the company. The struggles of these tech giants have played a significant role in the recent decline of the Nasdaq. Investors will be closely watching how these companies navigate the challenges and uncertainties in the coming months.
Private payrolls exceed expectations for December, eyes on Friday’s jobs report
In a positive sign for the US economy, the latest report from ADP showed that private payrolls jumped by 164,000 in December, surpassing expectations of 130,000. This stronger-than-expected reading suggests that the Federal Reserve might continue its hawkish stance to prevent the economy from overheating and to curb inflation. The minutes from the recent Fed meeting revealed that central bankers see downside risks to the job market throughout 2024, emphasizing the importance of monitoring labor market conditions. Investors will be eagerly awaiting Friday’s jobs report, which will provide further insights into the state of employment in the US.
US stocks trade mixed, Dow climbs while S&P 500 and Nasdaq end lower
The US stock market had a mixed trading day on Thursday, with the Dow Jones Industrial Average inching higher while the S&P 500 and Nasdaq closed lower. The tech-heavy Nasdaq continued its losing streak for the fifth consecutive session, weighed down by declines in major tech stocks such as Amazon, Microsoft, and Apple. In contrast, the Dow managed to eke out a slight gain. This divergence in performance reflects the ongoing challenges faced by the tech sector, as investors remain cautious about the future prospects of these companies. The market remains focused on the upcoming jobs report, which could significantly impact investor sentiment.
Apple faces downgrades, Nasdaq continues losing streak as tech stocks falter
Apple, one of the most prominent tech companies, faced downgrades from Barclays and Piper Sandler this week, adding to the downward pressure on the stock. The company’s shares dropped 1.2% on Thursday, capping off a tough week for Apple. The broader tech sector also struggled, with the Nasdaq experiencing its fifth consecutive losing session. Shares of Amazon and Microsoft also declined, contributing to the overall weakness in the tech-heavy index. The underperformance of these tech stocks raises concerns about the future direction of the sector and its impact on the broader market. Investors will be closely monitoring developments in the tech sector as they navigate the uncertainties of 2024.
Analyst comment
The news can be evaluated as negative for the market. The tech-heavy Nasdaq dropping for the fifth consecutive session reflects the struggles of major tech stocks like Apple, Amazon, and Microsoft. The downgrades and declines in these stocks contribute to the overall weakness in the market. Investors will need to closely monitor the performance and outlook of the tech sector.
