Minutes from the Fed's meeting last month has seemingly poured cold water on much of the optimism on interest rate cut. The number of Americans filing for jobless benefits for the first time fell to just 202k last week (week-ending Dec 30th) from +220k the prior week. That is basically 2023 lows. This news is also not supporting rate cut. Treasury ETF TLT is down 1.23% while 10 year Treasury yield climbing to near 4% this morning.
After dropping big yesterday, Bitcoin bounces to $43972, but it is still bounded by the one month trading range of $40000 to $45000. Investors are waiting for SEC's verdict on whether Bitcoin Spot ETFs would be approved for trading. Short term Bitcoin trend is unknown.
Apple (AAPL) gets 2nd downgrade this week from Piper Sandler analyst Harsh Kumar on deteriorating macro environment in China which could weigh on the handset business. Kumar downgrades AAPL rating to Neutral, price target 205. AAPL is down 1.10%. Mizuho raises Amazon.com (AMZN) price target from $180 to $220. However, AMZN - 1.17% is dropping for the 4th day this morning.
Nasdaq Composite falls for the 5th day in a row. It dropped below its 20 day moving average at 14750. Its short term trend is now down. After the worst start start to the year in almost two decades - it was just the third time in history that the Nasdaq started the year with back to back 1%+ declines (the other two years were 1980 and 2005). Meanwhile, the S&P 500's 20 day moving average at 4706 held and is helping the market bounce. If this level fails to hold, more market sell off is likely. With Treasury yields going back up and further weakness in tech stocks, more market sell off is likely.
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