The S&P 500 Index Declines Today as Federal Reserve Minutes Reveal Uncertainty
U.S. stocks fell on the second day of trading in January 2024, dampening hopes for a continued upward correction from the end of the year in the first week of 2024.
The S&P 500 Index declined by 0.8% after the minutes from the Federal Reserve’s Open Market Committee meeting revealed an uncertain path toward a more accommodative monetary policy this year. New job data released on Wednesday provided some clarity, confirming a slowdown in the labor market that could give policymakers the flexibility to start cutting interest rates. The Nasdaq fell by 1.2%, while the Dow Jones also closed down by 0.8%.
Dollar General Stock Drops After CEO Announces Reduction in Available Goods
Dollar General’s stock fell by 6.5% after the company’s CEO announced a reduction in the number of goods available for sale in stores. These cuts are part of efforts to mitigate inventory losses related to theft. The CEO warned that this move could put negative pressure on sales.
Aptiv Stock Declines Following Downgrade by Analysts
Aptiv, the automotive parts manufacturer, saw its stock decline by 6.3% after analysts at Baird downgraded the stock from “Outperform” to “Neutral.” This drop reflects some of the strong gains the stock had made in December due to optimism about Aptiv’s potential in the connected car market.
Walgreens Boots Alliance Stock Falls Due to Profit Downgrade Expectations
Walgreens Boots Alliance’s stock dropped by 4.1%, marking the weakest performance among stocks listed in the Dow index. The pharmacy giant is scheduled to release its quarterly results before the markets open on Thursday, with analysts expecting a decline in earnings due to a slowdown in COVID-19 vaccination and treatment rates.
Eli Lilly Stock Rises Due to Investor Optimism Over Zepbound Drug
Eli Lilly’s stock was the best performer in the S&P 500 on Wednesday, rising by 4.3% due to optimism regarding the company’s medication, Zepbound. An analyst at BMO noted that the drug appears poised to dominate the lucrative weight loss market in 2024, despite competition from Novo Nordisk’s Ozempic and Wegovy.
Oil and Gas Stocks Rise Amid Rising Oil Prices
Marathon Petroleum Corp. and other energy stocks gained by 3.6% after problems at a major oil field in Libya raised concerns that tensions in the Middle East could impact global oil supplies, contributing to a 3.7% increase in crude oil prices.
Other oil and gas stocks also benefited from rising oil prices. EOG Resources and Valero stocks added 2.8% and 2.4%, respectively, while many peer companies in the energy sector enjoyed strong gains.
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