Traders work on the floor of the New York Stock Exchange.
NYSE
Stock futures were little changed in overnight trading after the Nasdaq Composite registered its worst session since October.
Outback Steakhouse owner Bloomin’ Brands jumped more than 3% after it added two new members to its board. The additions are in accordance with an agreement Bloomin’ reached with activist investor Starboard Value.
Futures tied to the Dow Jones Industrial Average rose just 8 points, while S&P 500 futures and Nasdaq-100 futures hovered near the flatline.
Stocks started the new calendar year on a sour note, with the S&P 500 falling 0.6% and the 30-stock Dow finishing less than 0.1% higher. The Nasdaq Composite 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.
Artificial intelligence beneficiaries Nvidia, Advanced Micro Devices slumped 2.7% and 6%, respectively, while chatbot challengers Alphabet and Microsoft lost more than 1%. The VanEck Semiconductor ETF (SMH) dropped 3.4%, while Intel shed 4.9%.
“The burden of proof being on the bears is exactly how we’re starting the year,” Strategas’ Chris Verrone said on CNBC’s “Closing Bell: Overtime” on Tuesday. “When you think about the momentum surge we saw to end 2023, we’re talking about things that are rare.”
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.
The rotation back into risk assets stemmed from easing inflation and a drop in the 10-year Treasury yield, which finished the year…
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