The beginning of 2024 has witnessed a rocky start for the stock market. Advocates of the January Barometer are anticipating a reversal, as they believe that the market’s performance in the initial month sets the tone for the remainder of the year.

In the first two sessions, major indexes have experienced a pullback following a strong conclusion to 2023.

The S&P 500 has declined by 1.4%, and the Dow Jones Industrial Average is down by 0.7%. Notably, the Nasdaq Composite has seen a 2.8% drop, marking its poorest start to a year since 2005.

The tech giants that fueled the year-end rally in 2023 have shifted course, with concerns emerging among investors regarding the timing and extent of potential interest rate decreases, the Wall Street Journal reported.

Noteworthy declines include a 4.3% slide in Apple shares, a 4% drop in Tesla, and a 3.9% decrease in Nvidia.

While acknowledging that two days of returns hold limited significance for long-term investors, many are already contemplating whether the early-year selloff signifies a momentary hiccup or the onset of a more prolonged downturn.

Written by B.C. Begley

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