U.S. Stocks May Begin 2024 On Down Note Amid Profit Taking

Following the pullback seen to close out 2023, stocks may see further downside in early trading on Tuesday. The major index futures are currently pointing to a lower open for the markets, with the S&P 500 futures down by 0.8 percent.

Profit taking may contribute to initial weakness on the first trading day of the new year, as some traders look to cash in on last year’s substantial gains.

The tech-heavy Nasdaq skyrocketed by 43.4 percent in 2023, while the S&P 500 soared by 24.2 percent and the Dow surged by 13.7 percent.

A steep drop by shares of Apple (AAPL) may also weigh on the markets, with the tech giant tumbling by 2.2 percent in pre-market trading.

The slump by Apple comes after Barclays downgraded its rating on the company’s stock to Underweight from Equal Weight.

Nonetheless, some traders may remain away from their desks following the New Year’s Day holiday, looking ahead to the release of some key U.S. economic data in the coming days.

The Labor Department’s monthly jobs report is likely to be in focus, while reports on manufacturing and service sector activity may also attract attention along with the minutes of the latest Federal Reserve meeting.

Shortly after the start of trading, the Commerce Department is scheduled to release its report on construction spending in the month of November.

Economists expect construction spending to climb by 0.5 percent in November following a 0.6 percent increase in October.

Following the lackluster performance seen in recent sessions, stocks fluctuated over the course of the trading session on Friday before ending the day mostly lower.

The major averages showed a lack of direction in early trading but slid more firmly into negative territory as the session progressed.

Despite an afternoon recovery attempt, the major averages all finished the day in the red. The Dow edged down 20.56 points or 0.1 percent to 37,689.54, the Nasdaq slid 83.78 points or 0.6 percent at 15,011.35 and the S&P 500 fell 13.52 points or 0.3 percent to…