S&P 500 witnesses Tech stocks slip to start 2024

Key Insights:

• The S&P 500 fell 0.6% on Tuesday, January 2, 2024, as concerns about the iPhone demand in China and the restrictions on exporting semiconductors to the country weighed on tech stocks.
• Shares of cruise operators such as Norwegian Cruise Lines dived after the US Navy’s naval activities in the Middle East put passengers at risk.
• Shares of Moderna jumped 13.1% after the company’s CEO said that the company’s sales would grow in 2025.

The Nasdaq Composite Index dropped 1.6%. The S&P 500 also fell 0.6%, as concerns about the iPhone’s demand in China and the country’s restrictions on exporting semiconductors weighed on tech stocks. The Dow Jones Industrial Average managed to close with a small gain of less than 0.1%.

Advanced Micro Devices’ stock price dropped 6.0% after the Dutch government decided to withdraw its export license, which would have allowed ASML to ship equipment to China.

Several prominent tech stocks suffered due to analyst downgrades. For instance, shares of Uber Technologies dropped 5.2% after Nomura cut its rating on the stock. Barclays also downgraded Apple, which resulted in a 3.6% decline in its stock price.

Moderna’s stock price rose 13.1% on Wednesday after the company’s CEO said that the company’s sales would grow as it focuses on developing new vaccines. Also, analysts at Oppenheimer upgraded the stock. They noted that the company’s mRNA technology could help treat other diseases.

The rise in casino stocks was supported by the positive Macau gross gaming revenue figures for December. Shares of Las Vegas Sands and Wynn Resorts were up 4.3% and 3.8%, respectively.