Tech Stocks Ease Further, Bond Yields Rise, Banks Outperform: What's Driving Markets Thursday?

Author: Piero Cingari | January 04, 2024 03:04pm

The early 2024 sell-off has slowed down on Wall Street, with major indices showing flat or marginal performance at noon in New York on Thursday, except for the tech-heavy Nasdaq 100, which continued to drop.

On the data front, the December employment growth report measured by ADP significantly exceeded market expectations (164,000 vs. 115,000), signaling the ongoing resilience of the American labor market while awaiting Friday’s official jobs report.

Yields on Treasuries surged upward, with increases of about 7 basis points across the yield curve, as markets slightly reduced the chances of a rate cut in March. According to CME Group’s FedWatch, speculators are now pricing in a March rate cut with a 65% chance, down from nearly 85% a week earlier.

The popular iShares 20+ Year Treasury Bond ETF Trust (NYSE:TLT) fell 1.6%, on track for its heaviest loss in two months.

The U.S. dollar held steady, while Bitcoin (CRYPTO: BTC) rebounded 2.8%, following a 4.7% loss on Wednesday.

Thursday's Performance In US Major Indices, ETFs

Major Indices & ETFs	Price	%
Dow Jones	37,520.60	0.2%
Russell 2000	1,961.18	0.0%
S&P 500	4,704.38	0.0%
Nasdaq 100	16,329.99	-0.2%

The SPDR S&P 500 ETF Trust (NYSE:SPY) was 0.1% higher to $469.11, the SPDR Dow Jones Industrial Average ETF (NYSE:DIA) rose 0.3% and the Invesco QQQ Trust (NASDAQ:QQQ) eased 0.1% to $397.80, according to Benzinga Pro data.

Sector-wise, the Financial Select Sector SPDR Fund (NYSE:XLF) rose by 0.8%, outperforming other sectors. The Real Estate Select Sector SPDR Fund (NYSE:XLRE) underperformed for the second straight session, down 0.6%.

Among industries, the U.S. Global JETS (NYSE:JETS) outperformed, up 2.2%. Solar stocks, as tracked by the Invesco Solar ETF (NYSE:TAN), fell 2.2%.

Thursday’s Stock Movers

• Apple fell 1.1%, on track for a four-day losing streak.
• Cruise lines Carnival Corp. (NYSE:CCL) and Norwegian Cruise Line Holdings Ltd. (NYSE:NCLH) rallied 4.2% and 3.3%, respectively, after sharp losses suffered on Wednesday.
• QuantumScape Corp. (NYSE:QS) rose 44%, following a positive update on battery testing capabilities from a Volkswagen subsidiary.
• Peloton Interactive, Inc. (NASDAQ:PTON) rose 13%, after the company announced its collaboration with TikTok to boost brand identity.
• Walgreens Boots Alliance, Inc. (NASDAQ:WBA) fell 8% after the company announced a dividend cut.
• Truist Financials Corp. (NYSE:TFC) rose nearly 2%, after Bank of America upgraded the regional bank from Neutral to Buy, raising the price target from $37 to $43.

Read now: Why This Truist Financial Analyst Is Turning Bullish

Photo via Shutterstock.

Posted In: $BTC BX CCL DIA ENPH JETS NCLH OIH PTON QQQ QS SOFI SPY TAN TFC TLT WBA XLE XLF XLK