Pedestrians pass the Nasdaq MarketSite in New York, US, on Tuesday, Jan. 2, 2024.
Michael Nagle | Bloomberg | Getty Images
Stocks fell for a second day Wednesday, after the Nasdaq Composite registered its worst daily decline in nearly three months.
The tech-heavy index lost 0.7%, while the S&P 500 slipped 0.6%. The Dow Jones Industrial Average slid 185 points, or 0.5%.
The Nasdaq on Tuesday dropped more than 1.6% for its worst day since October, dragged down by major technology stocks and a nearly 4% decline in Apple after Barclays downgraded the iPhone maker.
Apple shares dipped another 0.3% on Wednesday.
Investors appeared to be selling last year’s tech winners, which soared in as the market anticipated easing monetary policy in 2024. But with the economy still on shaky ground and remaining uncertainty around when the Federal Reserve will finally begin cutting rates, investors seem to have curbed their enthusiasm.
Fellow tech stalwarts and “Magnificent 7” members Nvidia, Tesla and Meta all declined Wednesday. This pullback also comes as the U.S. 10-year Treasury trades above the key 4% mark again.
“Long term, I’m still very bullish. But near term I just worry that everybody is coming into the year feeling too good,” Steve Eisman, a senior portfolio manager at Neuberger Berman profiled in “The Big Short” told CNBC’s “Fast Money” on Tuesday.
Short-term corrections are nothing out of the ordinary in a market that’s coming off of fresh highs and entering primary season, he added, noting that the longer-term setup looks positive on a six- to twelve-month horizon.
The market’s coming off a breathtaking year that saw all the major averages bounce back from a devastating 2022. The S&P 500 surged more than 24% and capped off its longest weekly winning streak since 2004, while the Nasdaq jumped 43% for its best year since 2020.
Traders will receive clues Wednesday on the state of the economy and where Federal Reserve policy could head to next. Minutes from the Fed’s December policy meeting are due out Wednesday.
