Stocks struggled at the market opening of 2024 this week. It would need at least two straight days of small gains on the Dow Jones Industry Average, S&P 500, and Nasdaq.
Sellers aggressively closed or reduced positions to book last year’s 2023 profits. The market roared higher because it anticipated three or more rate cuts. This week, the mega-cap firms including Microsoft (MSFT), Amazon (AMZN), Alphabet (GOOG, GOOGL), and Tesla (TSLA) dipped. The drop suggests that markets are not confident about the Fed cutting even 25 basis points in its March meeting.
Should optimize return, the above-mentioned stocks are the first to shake off the dismal start.
On Thursday, the ADP employment report showed a 164,000 increase in private jobs. This is sharply higher than November’s 103,000 reading. Analysts expected 115,000 job additions in December. The 30-year Treasury bond price fell to around $97. TLT stock might find resistance at $100 in the next few weeks. It would break out if the chances of a rate cut increase in the next two months.
In the shipping sector, expect trading volumes to rise again for Zim Integrated (ZIM). Ships are avoiding the Red Sea, pushing day rates higher. ZIM stock gained around 35% in the last week.