Mid-Week Wrap: 14th February 2024
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Market Mood
On Tuesday, US stocks faced a jolt as higher-than-anticipated inflation data prompted a downturn in both stock and bond markets. Despite reaching an all-time intraday high of 5047 on Monday, the S&P 500 index experienced a 2% decline at its lowest point on Tuesday, ultimately closing at 4953, marking its most significant drop since September 22nd. US 10-year government bond yields surged to 4.31% from Monday's 4.17% following the unexpected inflation surge, leading to a corresponding decline in bond prices. The Russell 2000 index, representing small-cap stocks, took a substantial hit with nearly a 4% slump, reflecting the heightened sensitivity of smaller companies to changes in interest rates, particularly regarding business loans. Among individual stocks, Nvidia saw minimal change, down just -0.17%, while Microsoft and Amazon both experienced a decline of -2.15%, and Meta fell by -1.87%.