Market Recap 4/1/24

Dow -240.52 at 39566.85, Nasdaq +17.37 at 16396.83, S&P -10.58 at 5243.77

Today’s session featured a mostly negative bias. It was the first trading day of the new quarter following a stellar start to the year for many stocks, contributing to the overall negative vibe. Declining issues outpaced advancing issues by a roughly 2-to-1 margin at both the NYSE and at the Nasdaq.

The Russell 2000, which outperformed other major indices last week, dropped 1.0% today. The S&P 500 and Dow fell 0.2% and 0.6%, respectively. The Nasdaq Composite, meanwhile, eked out a 0.1% gain thanks to gains in some megacaps and relative strength in the semiconductor space. The PHLX Semiconductor Index (SOX) jumped 1.2%.

The downside pressure seen elsewhere in the stock market was in response to a sharp increase in market rates. The 10-yr note yield jumped 12 basis points to 4.33% and the 2-yr note yield rose 10 basis points to 4.72%.

Treasuries were reacting to some economic data that didn’t exactly corroborate the market’s thinking regarding rate cuts by the FOMC.

Eight of the 11 S&P 500 sectors settled with losses, but only one sector fell more than 1.0%. The rate-sensitive real estate sector was the top laggard, dropping 1.8% in response to the activity in Treasuries. Meanwhile, gains in Meta Platforms (META 491.35, +5.77, +1.2%) and Alphabet (GOOG 156.50, +4.24, +2.8%) helped propel the communication services sector to a 1.5% gain.

The energy sector was another top performer today, gaining 0.8%. It benefitted from positive action in Chevron (CVX 159.08, +1.34, +0.9%), Exxon Mobil (XOM 116.99, +0.75, +0.7%), and commodity prices. WTI crude oil futures settled 0.8% higher at $83.94/bbl and natural gas futures jumped 5.1% to $1.85.

Please see the updated P&L for stop changes.  Back at it fill swing in the morning.

Have a great night.

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Market Recap 3/27/24

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