ALBAWABA - U.S. indices closed lower in the initial sessions of 2024, driven by pressure on technology stocks following an increase in U.S. Treasury bond yields.
The yield on the 10-year U.S. Treasury bonds rose to its highest level in two weeks, touching 4%. Investors anticipate the Federal Reserve's December meeting minutes this week, along with a significant amount of labor market data, to confirm the timing of potential interest rate cuts.
Key U.S. index performances:
The Dow Jones index edged up by a slight 0.07% on Tuesday, closing above its historical level of 37,700 points.
The S&P 500, however, declined by approximately 0.6%, with the technology sector leading the list of losers, experiencing declines exceeding 2%.
The Nasdaq Composite index also dropped by 1.6%, closing below the 15,000-point mark and registering its largest daily loss in two months.
The trading volume on U.S. stock exchanges reached 11.9 billion shares on Tuesday, compared to an average of 12.4 billion over the last 20 trading days.
Apple stocks:
Apple shares fell by 3.6% on Tuesday, marking its biggest daily loss in four months. The company lost $107 billion in market value in a single day.
These losses followed Barclays downgrading the tech giant's rating to "underweight" from "equal weight." The bank also lowered the stock's target price to $160 from $161, citing weak demand for iPhones.
Moderna stocks:
Moderna shares surged by 13% on Tuesday, achieving its highest daily gain in over a year. This came after Oppenheimer upgraded the stock to "outperform," setting a target price of $142 per share.
