The roaring start to 2024 on Wall Street seems to have taken a momentary pause as the first trading day of the final week in March began with a slight retreat. Investors found themselves navigating through a landscape marked by a 0.2% dip in the S&P 500 (^GSPC) and a 0.3% drop in the Dow Jones Industrial Average (^DJI). Meanwhile, the Nasdaq Composite (^IXIC) managed to stabilize near the flatline after achieving yet another record high at the close of last week.
The momentum that propelled the S&P and Nasdaq to approximately 10% gains at the beginning of the year seems to have tapered off momentarily, with traders adopting a cautious stance as they brace for a shortened week ahead, with financial markets shuttered for Good Friday.
Eyes are keenly set on Friday’s economic data release, particularly the unveiling of the Personal Consumption Expenditures (PCE) price index, which encapsulates the Federal Reserve’s favored “core” PCE inflation gauge.
Last week, the Federal Reserve played a pivotal role in propelling the market’s bullish trajectory by affirming expectations of three rate cuts throughout the year, accompanied by optimistic economic forecasts.
However, the corporate landscape is not devoid of its own share of developments. Shares of tech giants Advanced Micro Devices (AMD) and Intel (INTC) witnessed a decline following a report by the Financial Times suggesting China’s intentions to phase out the utilization of their chips and servers in government computers.
Conversely, Boeing (BA) experienced a surge in its stock price subsequent to the announcement of CEO Dave Calhoun’s impending departure by year-end. The aircraft manufacturer has been grappling with a series of production and quality control challenges, exacerbated by an incident involving one of its 737 MAX 9 planes operated by Alaska Air earlier in January.
In a contrasting trajectory, Disney (DIS) shares soared over 2% on Monday, buoyed by a fresh upgrade from analysts on Wall Street.
As the market commences the week, the pause in momentum offers investors an opportunity to reassess their positions amidst a backdrop of evolving economic indicators and corporate maneuvers. The roaring start to 2024 on Wall Street seems to have taken a momentary pause as the first trading day of the final week in March began with a slight retreat.
