Stock futures were lower Tuesday, the first trading day of the year, as interest rates rebounded slightly and investors took some money off the table following a surprisingly strong 2023 that saw the S&P 500 rally 24%.
Futures for the Dow Jones Industrials tumbled 242 points, or 0.6%, to 37,770.
Futures for the S&P 500 sank 40.75 points, or 0.9%, at 4,779.25.
Futures for the NASDAQ swooned 200 points, or 1.2%, to 16,823.50.
Apple shares led the pullback after Barclays downgraded the member of the Magnificent 7 market leaders basket to an underweight rating.
The stock market finished 2023 with a bang, as the S&P 500 climbed for nine weeks in a row to end the year, notching its best weekly win streak since 2004. Risk assets enjoyed a big relief rally as the economy remained resilient and inflation cooled, while the Federal Reserve signaled an end to rate hikes and forecast rate cuts later this year. The market also endured a regional banking crisis as well as wars in Ukraine and the Middle East.
The Dow logged a 13.7% gain and notched a new record during 2023. Part of that rally was helped by a turn in interest rates.
In Japan, markets were closed Tuesday, while in Hong Kong, the Hang Seng Index faltered 1.5%.
Oil prices climbed $1.56 to $73.21 U.S. a barrel.
Gold prices added three dollars to $2,074.70 U.S. an ounce.