US equities continue to decline after their 2023 rise

 US equities continue to decline after their 2023 rise

US equities continue to decline after their 2023 rise

The broad-based S&P 500 index dropped 0.5 percent to 4,718.88 after around ten minutes of trade, while the Dow Jones Industrial Average declined 0.4 percent to 37,571.60.

At 14,670.94, the tech-heavy Nasdaq Composite index fell by 0.6 percent.

Early on Wednesday, Wall Street equities were down, with the three main U.S. indexes in the red and significant companies like Nvidia and Facebook's parent company Meta Platform plunging.

The broad-based S&P 500 index dropped 0.5 percent to 4,718.88 after around ten minutes of trade, while the Dow Jones Industrial Average declined 0.4 percent to 37,571.60.

At 14,670.94, the tech-heavy Nasdaq Composite index fell by 0.6 percent.

"All markets are sort of in a decline right now. Bond prices are correcting somewhat in a negative direction, while the dollar is correcting higher. Naturally, there is also some weakening in the stock market, according to Carl Helling of LBBW.

"It appears that the market has overreacted in the final stages of the year," he said. Thus, I believe that you just need a little technical adjustment at first."

The return follows a stellar 2023 during which the "Magnificent Seven" stocks—Amazon, Apple, Google parent Alphabet, Microsoft, Nvidia, and Tesla—saw enormous gains on to excitement in artificial intelligence.

However, a number of these brands showed weakness early on in the second day of the new year, including Meta shares dropped 0.4 percent, Nvidia down 0.7 percent, as well as Alphabet down 0.3 percent at the start of Wednesday.

Traders will be watching the minutes from the most recent Fed policy meeting in December and statistics on the US manufacturing sector that will be issued later in the day.

According to a comment from Patrick O'Hare of Briefing.com, "the market was delighted to learn Fed Chairman Powell suggest that there may have been some discussion at the meeting concerning when it would be appropriate to ease policy restraint."

"Market participants today will be interesting to see how involved the negotiations were," he said.