The S&P 500 fell Tuesday, the first trading day of the year, as bond yields inched higher and investors took some money off the table following a surprisingly strong 2023.
The Dow Jones Industrials recovered 25.5 points to end Tuesday at 37,715.04.
The S&P 500 subtracted 27 points to 4,742.83.
The NASDAQ collapsed 245.41 points, or 1.6%, to 14,765.94.
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.
Apple shares slid more than 3% after Barclays downgraded the member of the Magnificent 7 market leaders basket to an underweight rating. On the other hand, the Dow remained in positive territory as defensive stocks like Johnson & Johnson and Merck strengthened.
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 $1.26 to $70.39 U.S. a barrel.
Gold prices waned $4.90 to $2,066.90.
