Day Traders Diary

1/7/24

The major averages pulled back once again led by tech today as chip titan, Nvidia pulled back following the consumer electronics showcase last night. The Dow Jones Industrial Average fell 178 points or 0.42%. The S&P 500 fell 66 points or 1.1% while the Nasdaq Composite slid 375 points or 1.89%.

Nvidia led the sell off, down 6% its worst day in more than a month as their keynote address at a showcase last night did little to enthuse investors. All the big cap techs took a hit. Micron was one of the lone standouts in tech following positive comments by Nvidia.  

Another reason for the selloff is higher interest rates. The 10-year Treasury yield climbed 7 basis points to 4.69%, its highest level since April 26. The 2-year Treasury yield gained more than two basis points to 4.299%. The reason for the higher rates was due to the December ISM services price index came in at 64.4, up from 58.2 in November showing inflation is sticky.

The strongest sector today was energy up 1.1% as the price of oil rose once again, up 3% for the year back to the highs from October. Gold was higher today as well while bitcoin got clobbered with the higher interest rates.