Washington [US], January 10: U.S. stocks ended mixed on Tuesday, as investors evaluated the potential timing and magnitude of Federal Reserve interest rate cuts in 2024, ahead of the release of inflation data scheduled on Thursday.
The Dow Jones Industrial Average fell 157.85 points, or 0.42 percent, to 37,525.16. The S&P 500 lost 7.04 points, or 0.15 percent, to 4,756.5. The Nasdaq Composite Index increased 13.94 points, or 0.09 percent, to 14,857.71.
Seven of the 11 primary S&P 500 sectors ended in red, with energy and materials leading the laggards by losing 1.63 percent and 1.10 percent, respectively. Meanwhile, technology and consumer staples led the gainers by adding 0.25 percent and 0.24 percent, respectively.
Expectations for a rate cut by the Fed as early as March have diminished, with CME's FedWatch Tool indicating only a 65.7 percent likelihood of at least a 25 basis point cut, a decrease from 79 percent a week earlier. The U.S. Treasury yields, which have dropped in anticipation of rate cuts, remained relatively stable on Tuesday, with the 10-year Treasury yield at 4.01 percent.
The Federal Reserve still remains the biggest plot theme Tuesday, said Sonu Varghese, vice president and global macro strategist at Carson Wealth. "We're a long way from saying March is a certainty and I think the market is coming to terms with that."
Eversource Energy saw one of the S&P 500's largest losses, dropping 7.5 percent, after announcing a potential 1.6 billion dollar hit to its end-of-2023 results. This is due to negotiations over the sale of its stake in offshore wind projects, which may be valued lower due to various challenges.
Unity Software declined 8.1 percent after announcing a workforce reduction of about 25 percent, equating to 1,800 jobs. Boeing also saw a decrease, though less than on Monday, with its stock falling 1.1 percent after an in-flight incident involving one of its jets. Spirit AeroSystems, a Boeing supplier, fluctuated but ultimately gained 1.2 percent.
In airline news, JetBlue Airways' stock fell 10.7 percent following CEO Robin Hayes' announcement of his departure due to health reasons. Joanna Geraghty will succeed him, becoming the first woman to lead a major U.S. airline.
On the positive side, Illumina's stock rose 5.1 percent after forecasting higher-than-expected revenue for the end of 2023. Urban Outfitters also gained 7.5 percent, reporting a 10 percent increase in sales from the previous year.
Source: Xinhua
