The stock market ended the day with losses, continuing a broad retreat that started on Friday. Despite this, major indices managed to close above their session lows due to technical movements. The S&P 500 closed about 64 points lower, marking a 1.1% decline, after dipping below its 50-day moving average of 5,942.
The Nasdaq Composite traded down as much as 1.9% at its low and closed 1.2% below its prior close. However, turnaround action in NVIDIA (NVDA) helped major indices move off session lows. NVDA shares had been down as much as 2.2% but ended the day at 137.49, up by 0.48 or 0.4%.
The overall sentiment remained negative throughout the session, with decliners leading advancers by a 2-to-1 margin at the NYSE and a 3-to-2 margin at the Nasdaq. All 11 S&P 500 sectors experienced declines, ranging from 0.1% in energy to 1.6% in consumer discretionary.
Market influences attributed to profit-taking after a strong year and caution ahead of New Year’s holiday closures contributed to the downside bias. Foreign markets will be closed tomorrow or closing early for the holiday, while US markets will be open on Tuesday but closed on Wednesday.
The bond market saw gains, benefiting from safe-haven buying and rebalancing activity as stocks faced selling pressure. The 10-year yield settled seven basis points lower at 4.55%, while the 2-year yield settled eight basis points lower at 4.25%.
Several notable stock movements include a surge in Faraday Future (FFIE) on news of its upcoming prototype car unveiling, and a takeover offer from Casago for Vacasa (VCSA), valued at approximately $129 million in equity.
Investors are cautiously optimistic about the future potential of quantum computing stocks, including Rigetti Computing (RGTI) and D-Wave Quantum (QBTS). However, other tech giants like Apple (AAPL), Microsoft (MSFT), and Tesla (TSLA) face a 10% market pullback prediction due to their high valuations.
Source: https://www.gurufocus.com/news/2642739/market-today-ackman-sees-upside-in-fannie-mae-and-freddie-mac-amid-portfolio-shifts