Traders work on the floor of the New York Stock Exchange.
NYSE
Stocks fell on Tuesday, extending their struggles into 2024 as investors brace for key gains later this week.
The Dow Jones Industrial Average lost 223 points, or 0.6%. The S&P 500 fell 0.3% and the Nasdaq Composite fell more than 0.1%.
Several technology stocks were in the red on Tuesday, reversing the sector's huge gains on Monday. Unity Software shares fell 7.6% after the company said it would lay off about 25% of its workforce, and Netflix shares fell nearly 1% due to a downgrade by Citi. Apple shares also lost about 0.8%, while Tesla lost more than 2.5%.
Nvidia, on the other hand, stormed ahead. The chipmaker gained 1.7% and was trading at an all-time high since its stock market debut in 1999. On a positive note, shares of Juniper Networks rose more than 21% on Tuesday after a Wall Street Journal report said , Hewlett Packard Enterprise could announce that a deal to acquire the networking hardware company for about $13 billion is expected to close later this week.
Healthcare was the winning sector in the S&P 500, rising 0.33%.
“We're moving away from Big Tech and going into deeper areas of the market that have actually been unloved…We're seeing more buyers interested in healthcare, for example,” said LPL Chief Financial Officer Global Strategist Quincy Krosby. “Yesterday’s expansion included the Russell 2000 and that is helpful for market sentiment.”
These moves come after a strong trading session for stocks. The S&P 500 and Nasdaq Composite rallied on Monday as mega-cap tech stocks rebounded from last week's declines and shares of Nvidia hit an all-time high.
Later this week, investors will analyze two key inflation metrics to gain clarity on the Federal Reserve's path forward for rate cuts. The consumer price index for December is scheduled to be released on Thursday, followed by the producer price index on Friday.
Companies reporting earnings this week include Taiwan Semiconductor Manufacturing Company and Infosys on Thursday, and JPMorgan, UnitedHealth Group, Bank of America and Delta Air Lines on Friday, among other financial heavyweights.