Traders
work
on
the
floor
of
the
New
York
Stock
Exchange.
NYSE
Stock
futures
were
little
changed
in
overnight
trading
after
the
Nasdaq
Composite
registered
its
worst
session
since
October.
Futures
tied
to
the
Dow
Jones
Industrial
Average
slipped
2
points,
while
S&P
500
futures
and
Nasdaq-100
futures
hovered
near
the
flatline.
In
after-hours
trading,
Outback
Steakhouse
owner
Bloomin’
Brands
jumped
more
than
5%
after
it
added
two
new
members
to
its
board.
The
additions
are
in
accordance
with
an
agreement
Bloomin’
reached
with
activist
investor
Starboard
Value.
Stocks
started
the
new
calendar
year
on
a
sour
note,
with
the
S&P
500
falling
0.6%
and
the
30-stock
Dow
finishing
less
than
0.1%
higher
in
regular
trading.
The
Nasdaq
Composite
dropped
more
than
1.6%
for
its
worst
day
since
October,
dragged
down
by
major
technology
stocks
and
a
nearly
4%
decline
in
Apple
after
Barclays
downgraded
the
iPhone
maker.
Artificial
intelligence
beneficiaries
Nvidia,
Advanced
Micro
Devices
slumped
2.7%
and
6%,
respectively,
while
chatbot
challengers
Alphabet
and
Microsoft
lost
more
than
1%.
The
VanEck
Semiconductor
ETF
(SMH)
dropped
3.4%,
while
Intel
shed
4.9%.
“The
burden
of
proof
being
on
the
bears
is
exactly
how
we’re
starting
the
year,”
Strategas’
Chris
Verrone
said
on
CNBC’s
“Closing
Bell:
Overtime”
on
Tuesday.
“When
you
think
about
the
momentum
surge
we
saw
to
end
2023,
we’re
talking
about
things
that
are
rare.”
Short-term
corrections
are
nothing
out
of
the
ordinary
in
a
market
that’s
coming
off
of
fresh
highs
and
entering
primary
season,
he
added,
noting
that
the
longer-term
setup
looks
positive
on
a
six-
to
twelve-month
horizon.
The
market’s
coming
off
a
breathtaking
year
that
saw
all
the
major
averages
bounce
back
from
a
devastating
2022.
The
S&P
500
surged
more
than
24%
and
capped
off
its
longest
weekly
winning
streak
since
2004,
while
the
Nasdaq
jumped
43%
for
its
best
year
since
2020.
The
rotation
back
into
risk
assets
stemmed
from
easing
inflation
and
a
drop
in
the
10-year
Treasury
yield,
which
finished
the
year
below
3.9%
after
hitting
5%
in
October.
An
end
to
the
Federal
Reserve’s
aggressive
hiking
campaign
and
anticipation
of
rate
cuts
in
2024,
coupled
with
heightened
hopes
for
a
soft
landing,
have
also
boosted
sentiment
in
recent
weeks.
As
of
Tuesday
afternoon,
markets
are
pricing
in
a
nearly
70%
likelihood
of
cuts
beginning
in
March,
according
to
CME
Group’s
FedWatch
tool.
Minutes
from
the
Fed’s
December
policy
meeting
due
out
Wednesday,
and
remarks
from
Richmond
Fed
President
Tom
Barkin,
could
offer
further
clues
into
the
rate
path
ahead
before
the
central
bank
meets
later
this
month.
The
job
openings
report
for
November
and
December’s
ISM
manufacturing
data
are
also
due.
