US stocks kick off 2024 with losses as mega-cap tech drags down broader market

• US stocks fell in their 2024 trading debut on Tuesday with mega-cap tech stocks down the most.
• A jump in interest rates drove the market lower on Tuesday, while delayed trades for tax purposes may have also had a hand. 
• Investors are also trying to gauge how many rate cuts the Fed will implement this year.

US stocks were mostly lower in their first trading day of 2024, with mega-cap tech stocks dragging down the S&P 500 and Nasdaq 100. Meanwhile, a jump in health care stocks helped drive slight gains in the Dow Jones Industrial Average.

Apple stock fell more than 4% after Barclay's downgraded the stock, knocking more than $100 billion off its market valuation.

Tax-fueled trades could be driving much of the selling on Tuesday, as investors delayed taking gains on their investments until after the 2023 calendar year-end deadline, as could a slight rise in bond yields.

For the new year, investors are laser-focused on how many interest rate cuts the Federal Reserve might implement. While market futures currently suggest as many as six 25-basis point rate cuts from the Fed this year, the Fed is forecasting only three rate cuts. 

The December employment report, set to be released on Friday, will help inform investors about their interest rate views, as a weak report could bolster the idea that the Fed needs to more aggressively cut interest rates, and vice versa if it's a strong report.

Here's where US indexes stood at the 4:00 p.m. closing bell on Tuesday: 

• S&P 500: 4,742.83, down 0.57% 

• Dow Jones Industrial Average: 37,715.04, up 0.07% (+25.50 points)

• Nasdaq Composite: 14,765.94, down 1.63%

Here's what else happened today:

• Bitcoin surged past $45,000 for the first time since April 2022. The token jumped as bullishness builds around a potential spot bitcoin ETF.
• 2024 will be the year AI solidifies its position as a dominant investing theme – and tech stocks could surge by up to 33%, according to Wedbush.
• Chinese leader Xi Jinping on Sunday acknowledged the challenges his country's economy faces and said that companies have had a "tough time."
• The stock market could post monster gains in 2024 if a "January Trifecta" is realized, though there's only a day left for the trade to stay alive.
• Discovery Capital Management's macro hedge fund, led by "Tiger cub" Rob Citrone, saw a stunning 48% return in 2023, according to Bloomberg.
• A bull market could power tech stocks higher over the next five years, according to Deepwater Assert Management managing partner Gene Munster.

In commodities, bonds, and crypto: 

• West Texas Intermediate crude oil dropped 1.72% to $70.42 a barrel. Brent crude, the international benchmark, declined 1.36% to $75.99 a barrel. 
• Gold fell 0.19% to $2,067.80 per ounce. 
• The 10-year Treasury yield rose eight basis points to 3.943%.
• Bitcoin edged higher by 1.48% to $44,853.