Dow faces losses, Nasdaq hits 3-month low

The stock market faced notable losses last week, with the Nasdaq composite closing below the 50-day line and Treasury yields hitting 52-week highs. The Dow Jones Industrial Average fell 1.9%, reaching its lowest since November 5. The S&P 500 declined 1.9%, and the Nasdaq composite shed 2.3%, hitting their lowest points since late November. The small-cap Russell 2000 dropped 3.5%, reaching a three-month low. Nvidia stock fell 5.9% for the week to 135.91, dipping below the 50-day line after previously touching a record high of 153.13. This came after CEO Jensen Huang’s CES speech and the subsequent U.S. curbs on AI exports. Tesla stock declined 3.8% for the week to 394.74, falling below the 21-day line despite launching the “Juniper” Model Y, which has garnered over 50,000 pre-orders. Major indexes are currently in downtrends, with Dow Jones futures declining 0.15% vs. fair value, S&P 500 futures falling 0.65%, and Nasdaq 100 futures losing 0.9%.

Nasdaq at three-month low

The 10-year Treasury yield surged to 4.77%, its highest since November 2023. U.S. crude oil futures rose 3.5%, reaching $76.57 a barrel last week amid new U.S. sanctions on Russia’s oil industry. With the market in a downtrend, investors should be cautious. Current conditions call for reducing exposure and preparing for opportunities when the market rebounds. This involves staying engaged, focusing on stocks holding key levels, and showing potential resilience. Earnings season is set to pick up this week with notable names like JPMorgan Chase and UnitedHealth reporting. This, alongside the JPMorgan Healthcare Conference and the ICR Conference, is expected to keep the news cycle busy. The stock market’s recent volatility and the imposition of new AI export restrictions have created a challenging environment. Investors are advised to stay vigilant, adjust their exposure as needed, and prepare for potential market opportunities in the coming weeks.