The Nasdaq index continues its poor performance in 2024… and oil jumps 3%
After its worst daily performance in nearly three months, the Nasdaq US stock index continued its poor performance on Wednesday, ending the day down 173 points, recording its fourth consecutive day of defeats.
In Wednesday’s trading, the decline points in the index, whose movements are governed by technology companies, represented 1.18% of its value at the beginning of the day, and the S&P 500 index, which is the most comprehensive of sectors of the American economy, declined by 0.80%, which is almost what the Dow Jones Industrial Average did, which… He lost 0.76%.
Tuesday, the first trading day of the new year, was the worst day for the Nasdaq index since October, as shares of most major technology companies declined, and Apple shares lost nearly 4% of their value, after Barclays Bank announced a downgrade in the phone maker’s rating. The most famous smart phone in the world. Apple stock fell another 0.8% on Wednesday.
The prices of 10-year US Treasury bonds also declined, as the yield on them rose above 4% for the first time in two weeks, after ending Tuesday’s trading at 3.91%.
The Nasdaq index fell the most
Market analysts considered that the recent declines, especially in the Nasdaq index, came against the backdrop of profit-taking operations, after strong rises witnessed in December of the year ending, against the backdrop of increasing expectations of a US interest rate cut early next year.
Major stock indexes were also under pressure on Wednesday afternoon, following the release of minutes from the Federal Reserve’s latest meeting, which showed the central bank is still not quite ready to cut interest rates.
“Participants generally stressed the importance of maintaining a careful, data-driven approach to monetary policy decisions,” the minutes said. “They reiterated that it would be appropriate for policy to remain in a restrictive stance for some time until inflation moves clearly lower.” Sustainable towards the committee’s goal.
However, officials have indicated that they expect cuts of three-quarters of a percentage point sometime this year, although there is a high degree of uncertainty about when those cuts might occur.
Relatedly, oil prices jumped about 3% today, Wednesday, after the cessation of production from the largest field in Libya stoked fears that the growing tension in the Middle East may reduce global oil supplies.
Brent crude futures rose $2.36, or 3.1%, to record $78.25 per barrel upon settlement, while US West Texas Intermediate crude rose $2.32, or 3.3%, to $72.70 per barrel.
The two benchmarks rose for the first time in five days, while US crude recorded the largest daily increase since mid-November.
“Oil is rising today, supported by protests in Libya’s largest oil field and new attacks in the Red Sea,” said Craig Erlam, chief market analyst at Oanda Data and Analytics.
In Libya, a member of the Organization of the Petroleum Exporting Countries (OPEC), protests prompted the closure of the Sharara oil field, which has a production of 300,000 barrels per day.
Oil also rose after Israeli forces intensified their bombing of the Gaza Strip on Wednesday, after the war spread to Lebanon with the killing of the deputy head of the political bureau of Hamas.
Hassan Nasrallah, leader of the Iranian-backed Lebanese Hezbollah group, said on Wednesday that the killing of Hamas’s deputy leader was a “major and dangerous crime that cannot be tolerated.”
In the Red Sea, the Houthi group, also allied with Iran, continued its attacks on commercial ships, which fueled fears of the possibility of a broader conflict in the Middle East, causing the closure of vital corridors for transporting crude, including the Red Sea and the Gulf.
In Iran, an OPEC member, more than 100 people were killed in two explosions, and dozens were injured in a ceremony to commemorate Revolutionary Guard leader Qassem Soleimani, who was killed in an American drone attack in 2020.
OPEC confirmed that cooperation and dialogue within the organization and its allies, the alliance known as OPEC+, will continue after Angola, an OPEC member, announced its withdrawal from the organization last month.
OPEC+ includes OPEC and allies, including Russia.
2024-01-04 00:01:04
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