Techs, Small Caps Extend Losses After Sell-Off; BX, SHOP, RYAAY In Focus | Stock Market Today

TL;DR

Tech stocks and small caps experienced a sell-off, causing a decline in the market.

Transcript

good afternoon everyone and welcome to stock market today it's Alexis Garcia and Ken shrieve here to break down the market action in today's session for Wednesday January 3rd and can stocks extending losses today with techn and small caps coming under pressure what do you have on top for us today yeah it really felt like a mirror image of Tuesday w... Read More

Key Insights

• 🙈 The market saw a sell-off in tech stocks and small caps, possibly due to tax selling and profit-taking.
• 🫥 The NASDAQ Composite and the S&P 500 extended their declines, approaching their 21-day lines.
• 🛀 Healthcare stocks showed relative strength in the market.
• ❓ The Federal Reserve's minutes may have caused uncertainty in the market.
• 🛀 Blackstone and Shopify experienced pullbacks, with Blackstone showing a change in character and needing to firm up before becoming actionable.
• 👋 Ryanair, despite a sharp decline, has steady growth and good fundamentals, making it a stock to watch.
• 👶 The market's current conditions make it challenging for new buys to make headway.

Questions & Answers

Q: Why were tech stocks and small caps under pressure in the market?

The decline in tech stocks and small caps is likely due to tax selling and profit-taking after their strong performance in the previous year.

Q: How did the major indexes perform in today's session?

The NASDAQ Composite was down 1.2%, the S&P 500 decreased by 0.8%, the Dow Jones slipped by 0.7%, and small caps were hit hard with a 2.6% decline.

Q: What impact did the Federal Reserve's minutes have on the market?

The minutes from the December Fed meeting confirmed the expectation of three rate cuts in 2024, which may have caused uncertainty in the market.

Q: How did healthcare stocks perform in today's session?

Healthcare stocks, represented by the XLV ETF, had a strong performance yesterday but reversed lower today. However, the technicals still look decent, suggesting the potential for healthcare to be a pocket of leadership this year.

Summary & Key Takeaways

• Tech stocks and small caps faced pressure, leading to a decline in the market.

• The NASDAQ Composite extended its slide for the fourth consecutive day, falling below the 21-day line.

• The S&P 500 also experienced a third straight day of decline, approaching its 21-day line.