US Markets Update – 24’Rally losing steam, pressure on small cap stocks

US Markets Update – 2024 Week11 Update/Recap

US Markets Update – During the 11th week of 2024, major indices declined while 10-year, 20-Year and 30-Year US Treasury Yield Rates rose near highest level of 2024. Nasdaq Composite, S&P Composite and DJIA, benchmark indices faced tough resistance for further run-up.

Broadly, tech stocks like NVIDIA, GOOGL, AAPL, MSFT supported the markets while small cap stocks seen bleeding and gave up more than 2% this week. Russell Index for small-cap i.e. RUT (Russell 2000) closed 2.083% lower on weekly basis, while on yearly basis, the index is now back at just 12 points above from 2023 closing levels (i.e. 2027 Points).

Other important Russell Indices such as RUA (Russell 3000) Global index and RUI (Russell 1000) for large-cap declined by 0.31% and 0.214% on weekly basis respectively.

US Markets Update – Summary of the 2024 Week 11:

US Markets Update – Among Global indexes, at broader level all the indices faced pressure from profit-taking and declined marginally.

NASDAQ Composite Index declined by 0.696% i.e. (112 points) this week.

S&P 500 declined by 0.129% (6.6 Points) and DJIA (US30) lost 0.02% i.e. 8 points to close at 38714.77 level.

RUSSELL3000 (RUA) Global index declined by 0.31% (9 Points) ,

RUSSELL1000 (RUI) Large Cap index declined by 0.21% (6 Points) and

RUSSELL2000 (RUT) Small Cap index declined by 2.08% (43.39 Points) during the past week, now trading at just 12 points above from 2023 closing level.

US Markets Update – Key heavy-weight stocks that ROSE on weekly basis:

• MSFT (MICROSOFT CORP.) rose by 10.20 USD (2.511%) to close at 416.42 $ per share
• GOOGL (Google) rose 5.77 USD (4.261%) to close at 141.18 $ per share
• NVDA (NVIDIA CORP) rose by 3.08 USD (0.352%) to close at 878.36 $ per share
• AAPL (Apple Inc.) rose 1.89 USD (1.107%) to close at 172.62 $ per share

US Markets Update : Among the key heavy-weight stocks that FALL on weekly basis are:

• META (META PLATFORMS) declined by 21.85 USD (4.319%) to close at 484.1 $ per share
• TESL (TESLA INC.) declined by 11.77 USD (6.713%) to close at 163.57 $ per share
• AXP (AMEX) lost 4.91 USD (2.198%) to close at 218.46 $ per share
• MRK (MERCK&CO) lost 1.98 USD (1.603%) to close at 121.52 $ per share

US Markets Update : Among the small-cap stocks that remained active on weekly basis are:

Small Cap stocks gained past week:

• AISP (AIRSHIP SI HOLDINGS INC.) gained 58.09% to close at 10.75$ per share
• HEAR(TURTLE BEACH CORP) gained 45.65% to close at 15.41$ per share
• MINM (MINIM INC.) gained by 20.87% to close at 6.37$ per share
• HOLO(MICROCLOUD Hologram) gained by 18.6% to close at 6.43$ per share
• SG (SWEETGREEN INC.) gained 18.23% to close at 22.18$ per share
• ROOT (ROOT INC.) gained 15.55% to close at 52.89$ per share
• XPOF (XPONENTIAL FITNESS INC.) gained 10.89% to close at 15.27$ per share
• COGT (COGENT BIO, Inc.) gained by 6.98% to close at 7.05$ per share
• NNOX(NANOXIMAGING) gained 5.583% to close at 10.78$ per share
• SWBI (SMITH & WESSON BRANDS INC.) gained 0.863% to close at 17.54$ per share
• LUNR (INTUITIVE MACHINES INC.) gained by 0.36% to close at 5.49$ per share

Small Cap stocks declined past week:

• COCH (ENVOY MEDICAL INC.) lost 44.44% to close at 5$ per share
• PACB(PACIFIC Biosciences of California, Inc.) declined by 14.44% to close at 3.79$ per share
• TRUP(TRUPANION) declined by 8.223% to close at 27.12$ per share
• COHR (COHERENT) declined by 7.986% to close at 58.76 $ per share
• TTMI (TTM TECHNOLOGIES) declined by 6.258% to close at 14.08$ per share
• TDS(TELEPHONE AND DATA SYSTEMS) declined by 3.139% to close at 15.43$ per share
• AVNW (AVIAT NETWORK) lost 2.727% to close at 34.6 $ per share
• JMIA (JUMIA TECH AG) lost 2.542% to close at 6.9$ per share

AISP (AIRSHIP HOLDINGS) shares jumped by 58% to close at 10.75$ per share. Airship AI Holdings, Inc. (NASDAQ: AISP) , a leader in AI-driven video, sensor, and data management surveillance solutions, was awarded last week a large contract to an agency within the Department of Justice (DOJ) for the Company’s Acropolis Enterprise Sensor Management video and data management platform supporting emerging public safety and investigative requirements. The shares have attracted many more buyers since this news was flashed.

COCH (Envoy Medical Inc.) shares lost 44% to close at 5$ per share. Envoy Medical, Inc., a hearing health company, provides medical technologies for the hearing loss spectrum. CFO David Wells will participate in the 36th Annual ROTH Conference being held on March 17 – 19, 2024 at The Ritz Carlton, Laguna Niguel located in Dana Point, CA. and hold discussions with investors and analysts at the conference to share details on clinical trials. Earlier shares had jumped with the news about $10 Million Term Debt Financing from existing investor and billionaire entrepreneur Glen Taylor for the launch of upcoming US-based pivotal clinical trial for our innovative investigational fully implanted Acclaim® cochlear implant.

HEAR (Turtle Beach) a leading gaming accessories brand announced strategic acquisition of Performance Designed Products (PDP) for 118 million $. PDP is a privately held third-party gaming accessories leader that designs and distributes aftermarket video game accessories, including controllers, headsets, power cases, and other accessories. The combined company anticipates total revenues of $390 to 410 million in the first full 12 months of ownership

US Markets – 2024 YTD change on the key Indices

NASDAQ Composite, DJIA and S&P 500 index came back marginally from life time highs during past week but gains since 2023 closing levels is still significant. On YTD, change in 2024 are:

• S&P500 (SPX) 347 Pts i.e. 7.28% UP at 5117 (2023 Closing level 4769.83) near its historic high.
• Nasdaq Composite 961.82 Pts i.e. 6.407% UP at 15973.17 (2023 Closing level 15011.35).
• Russell1000 (RUI) 182 Pts i.e. 6.94% UP at 2804.12 (2023 Closing level at 2622.14) rep. Large Cap stocks.
• Russell3000 (RUA) 181.3 Pts i.e. 6.597% UP at 2929.51 (2023 Closing level at 2748.21) representing Global US stocks.
• Dow Jones 1025.23 Pts i.e. 2.72% UP at 38714.77 (2023 Closing level 37689.54).
• Russell2000 (RUT) 12.25 Pts i.e. 0.604% UP at 2039.32 (2023 Closing level 2027.07) rep. Small Cap Stocks.

US Markets update – US Bond Yields since 2024 beginning

All the 3 major bond yields – 10 Years, 20 Years and 30 Years closed above 4.3% returned back to near 2024 highs. 10 Years rate got closed at 4.32%, 20 Years at 4.59% and 30 Years at 4.49% during the last week ended on 15th Mar 2024.

Yield Curve Trend in 2024 (Courtesy: ustreasuryyieldcurve.com)

What’s the buzz this week from key economic indicators?

US Markets Update: On economic indicators front, the news/updates created mixed sentiments among investors (bulls and bears):

US department of treasury made an auction of 30-Year treasury bonds to the tune of US$ 22 billion to manage the shortfall in the amount collected from taxes and that spent for running Govt, for refinancing existing debt and/or to raise capital. Earlier in Feb this year, the US government had sold a record $42 billion of 10-year notes at a lower-than-anticipated yield indicating confidence that the Federal Reserve will eventually cut interest rates.

Census Bureau released data related to Core Retail Sales which was lower than market forecast i.e. 0.3% Actual vs. 0.5% Forecast.

On YoY basis, Core Consumer Price Index (CPI) released figure of 3.8% vs. 3.7%. On MoM basis for Feb, Core CPI was 0.4% versus 0.3%.

CPI YoY (Feb) was 3.2% Actual versus 3.1% Forecast.

CPI measures the change in the price of goods and services from the perspective of the consumer. It is a key way to measure changes in purchasing trends and inflation.

Earlier market analysts took strong note from the testimony of Powell who reinforces position that the Fed is not ready to start cutting interest rates. Fed Chair Jerome Powell said policymakers remain attentive to the risks that inflation poses and don’t want to ease up too quickly, lowering rates too quickly risks losing the battle against inflation and likely having to raise rates further, while waiting too long poses danger to economic growth.

Key economic indicators to watch in next week

In the next week 12 (18 – 23 Mar, 2024), traders will be watching out FOMC Statement and Fed Interest Rate Decision on Tuesday i.e. 19th March.

Credit: Investing.com: Economic-Calendar