US stocks extend losses to start the new year following worst day since October

• US stocks ticked lower on Wednesday, extending their losses from the previous trading session.
• Stocks notched their worst losses since October on Tuesday, snapping a strong year-end rally in 2023.
• Bond yields ticked higher as investors tempered their expectations of Fed rate cuts.

US stocks continued to slide on Wednesday after finishing off the previous trading session with the worst losses since October. All three benchmark indexes ticked lower while bond yields rose, with the 10-year Treasury yield rising four basis points to trade around 3.99%.

Investors are beginning to temper their expectations for Fed rate cuts next year, which sparked a strong year-end rally in stocks. Central bankers have signaled 75 basis points worth of cuts in 2024, though markets are still pricing in about double that amount by the end of the year, according to the CME FedWatch tool.

Interest rates risk staying higher for longer given the resilience of the US economy, which could end up weighing on stocks. The job market in particular remains strong, with the US adding a more-than-expected 199,000 jobs in November.

Investors are eyeing the December jobs report to roll out on Friday, which should give guidance on future Fed policy moves. Fed officials are slated to meet at the end of the month, with markets pricing in an 89% chance central bankers will opt to keep interest rates level.

Here's where US indexes stood shortly after the 9:30 a.m. opening bell on Wednesday: 

• S&P 500: 4,719.56, down 0.5% 
• Dow Jones Industrial Average: 37,577.26, down 0.4% (138 points)
• Nasdaq Composite: 14,674.31, down 0.6%

Here's what else is going on today: 

• Apple just shed $100 billion of market value in a single day.
• Lululemon founder Chip Wilson missed out on billions by slashing his stake in the yogawear giant in early 2020.
• Sanctions haven't yet crushed Russia, since it's a state-run economy, one Russian economist says.
• Investors are getting tempted by cheap China stocks that have slumped 60% over the last 2 years.

In commodities, bonds, and crypto: 

• West Texas Intermediate crude oil ticked higher 0.85% to $70.95 a barrel. Brent crude, the international benchmark, rose 0.86% to $76.54 a barrel. 
• Gold fell 1.05% to $2,037.39 per ounce. 
• The 10-year Treasury yield rose four basis points to 3.989%.
• Bitcoin tumbled 7.51% to $42,362.