Thu. Nov 21st, 2024

Financial Market Update, January 8, 2024: S&P 500 Makes a Comeback, Fueled by the Impressive Performance of the Magnificent Seven

Dow Jones
Dow Jones

Stock markets exhibit signs of vitality following a challenging commencement to the year last week.

On Monday, both the S&P 500 and Nasdaq Composite concluded the day with robust gains, propelled by the resurgence of major technology stocks that experienced a downturn the previous week, following their substantial performance throughout 2023. The comprehensive markets roundup for the day is available here.

Despite Boeing shares facing a downturn due to an incident where a segment of a MAX jet detached midflight, necessitating an emergency landing, the Dow also closed higher. Concurrently, shares of Spirit AeroSystems, a supplier for Boeing, witnessed a decline.

Key highlights as of late Monday:

  • Stock indices exhibited an upward trajectory, notably with the Nasdaq Composite witnessing a gain of over 2%. The S&P 500 registered an ascent of more than 1%, rebounding from the previous week’s dip that interrupted a nine-week winning streak.
  • Boeing shares experienced an 8% decline. However, major technology stocks rebounded, with all components of the “Magnificent Seven” concluding the day positively following last week’s downturn. Nvidia took the lead, surging more than 5% to achieve a record closing.
  • Oil prices observed a descent, with front-month U.S. crude falling over 4% to dip below $71 per barrel after Saudi Arabia implemented price reductions.
  • Bond yields underwent a decrease, with the 10-year Treasury yield declining to 4.001% after settling at 4.041% on Friday.
  • Global markets demonstrated mixed performance. The Stoxx Europe 600 rebounded into positive territory after initial declines. Meanwhile, Hong Kong’s Hang Seng Index faced an almost 2% drop, and the Shanghai Composite witnessed a 1.4% descent.

Anticipated developments in the forthcoming days include:

  • The commencement of the earnings season in full swing this week, with major companies such as JPMorgan Chase and Bank of America slated to report on Friday.

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