U.S. technology stocks welcome the "opening hammer", Apple suddenly spread a big profit, and the market value evaporated 760 billion yuan overnight, what happened?
Edited by: Bi Luming
On the first trading day of 2024, U.S. bonds and most U.S. stock indexes got off to a black start.
On the first trading day of 2024 (January 2, 2024 local time), the three major stock indexes were mixed. At the close, the Dow rose 0.07%, the Nasdaq fell 1.63%, and the S&P 500 fell 0.57%.
According to a Reuters analysis, the volatility of U.S. Treasury yields reflects weaker investor expectations for U.S. interest rate cuts in 2024, weighing on growth stocks. On the day, the benchmark U.S. 10-year Treasury rose 7.7 basis points to 3.937%, the biggest one-day gain in more than three weeks.
On the market, bank stocks rose collectively, JPMorgan Chase rose 1.2%, Goldman Sachs rose 0.65%, Citigroup rose 3.13%, Morgan Stanley rose 0.71%, Bank of America rose 0.7%, and Wells Fargo rose 0.25%. Big tech stocks were weak, with Amazon down 1.32%, Netflix down 3.8%, Google down 1.07%, Facebook down 2.17%, and Microsoft down 1.37%. Among them, the chip concept suffered a heavy setback, Arm fell 8.29%, and Nvidia fell more than 2.73%.
It is worth mentioning that Apple's share price has a "black start" in 2024, falling about 4.5% at midday on Tuesday, January 2, and narrowing the decline to less than 4% at the end of the session, closing down about 3.6%, and the market value evaporated by 107.1 billion US dollars (about 766 billion yuan) overnight, still the largest one-day decline since August 4, 2023, and a new low since November 9, 2023.
On the news, Barclays analysts downgraded Apple stock in a rare way.
Barclays analysts, led by Tim Long, downgraded Apple's stock to underweight with a price target of $160 from $161, as reported by the Securities Times on January 2, 2024, meaning that the company's stock price will fall by 17% in the coming year.
In a research note released on Tuesday, Barclays analysts wrote: "We expect that to change when Apple's stock has outperformed other companies in the past year when results have missed expectations for most quarters." ”
The bank's analysts also pointed out that the new iPhone 15 performed underwhelmingly, with sales and configurations falling short of expectations, and the same is expected for the iPhone 16, with no more attractive features or upgrades.
In 2023, U.S. technology stocks, especially large-cap stocks, led the rally in 2023, with Apple soaring 48%, Microsoft soaring nearly 57%, and Nvidia soaring 239%. The tech-heavy Nasdaq Composite Index closed 2023 up 43.4%.
The trend reversed on Tuesday as New Year's trading began, with the stocks falling in early trading. Apple's stock price fell 2% after negative news from Barclays. The company said Apple could lose about 17% in 2024 due to mediocre iPhone sales. Shares of Microsoft and Nvidia also fell in early trading.
In addition, popular Chinese concept stocks fell, and the Nasdaq China Golden Dragon Index fell 3.50%. Li Auto and Weilai fell more than 7%, JD.com, Full Bang, and Futu Holdings fell more than 5%, Bilibili fell more than 4%, Xiaopeng Motors, Weibo, Alibaba, Tencent Music, Baidu fell more than 3%, Vipshop fell more than 2%, iQiyi fell more than 1%, and NetEase and Pinduoduo fell slightly.
Crude oil fell, with WTI crude futures for February delivery closing down $1.27, or 1.78%, at $70.38 a barrel, and Brent crude futures for March delivery closing down $1.15, or 1.49%, at $75.89 a barrel.
Daily Economic News, China-Singapore Jingwei, Securities Times
(Disclaimer: The content and data in this article are for reference only and do not constitute investment advice. Do so at your own risk. ）
National Business Daily