Stocks fell Tuesday, the first trading day of the year, as interest rates rebounded slightly and investors took some money off the table following a surprisingly strong 2023 that saw the S&P 500 rally 24%.
The Dow Jones Industrials shed 26.73 points to open Tuesday and the New Year at 37,662.81.
The S&P 500 subtracted 32.72 points to 4,737.11.
The NASDAQ blundered 244.1 points, or 1.6%, to 14,767.25.
Apple shares led the pullback after Barclays downgraded the member of the Magnificent 7 market leaders basket to an underweight rating.
The stock market finished 2023 with a bang, as the S&P 500 climbed for nine weeks in a row to end the year, notching its best weekly win streak since 2004. Risk assets enjoyed a big relief rally as the economy remained resilient and inflation cooled, while the Federal Reserve signaled an end to rate hikes and forecasted rate cuts later this year. The market also endured a regional banking crisis as well as wars in Ukraine and the Middle East.
Technology shares, especially megacap stocks, led the 2023 advance with Apple soaring 48%, Microsoft surging nearly 57% and Nvidia skyrocketing 239%. The tech-heavy NASDAQ Composite ended the year up 43.4% for its best year since 2020.
That trend was reversing on Tuesday as the new year of trading began with those same stocks declining in early trading. Apple shares were down 2% after the negative call from Barclays. The firm said Apple could lose about 17% this year because of lackluster iPhone sales.
Microsoft and Nvidia shares were also in the red in early trading.
The blue-chip Dow logged a 13.7% gain and notched a new record during 2023. Part of that rally was helped by a turn in interest rates.
Prices for the 10-year Treasury slipped a mite, raising yields to 3.94% from Friday's 3.95%. Treasury prices and yields move in opposite directions.
Oil prices decreased 12 cents to $71.53 U.S. a barrel.
Gold prices strengthened two dollars to $2,073.80.
