Futures Stumble On First Day Of 2024 As Oil, Yields, Dollar Jump

After a blockbuster year for stocks, one which saw an $8+ trillion surge in the S&P 500 and a 55%+ explosion in the Nasdaq, its best year since 1999 (everyone knows what happened next), markets have started the new 2024 on the back foot with US equity futures sliding 0.7% as tensions in the Middle East sent oil surging, while Chinese data came in weak. As oil jumped, treasury yields rose more than 7bps while the dollar rose the most in 3 months as rate cut odds got slashed by a market that clearly got carried away by euphoria in 2023 Santa Rally. As of 7:40am, S&P futures dropped 0.7%, while Nasdaq 100 futs lost 1% as shares of Apple fell in US premarket trading after a downgrade by Barclays. Yields on 10-year US bonds and German bunds added more than seven basis points as money markets wagered on fewer than 150 basis points of easing by the Federal Reserve.

In premarket trading, Apple dropped 1.8% as the stock got itself a new bear, with expectations of soft demand for its latest iPhone prompting analysts at Barclays to downgrade the stock. Cryptocurrency-linked stocks like Marathon Digital (MARA) and Riot Platforms (RIOT) rallied on Tuesday morning as Bitcoin rose past the $45,000 mark to touch its highest level since April 2022, amid anticipation that US regulators will soon approve an exchange-traded fund that will invest directly in the token. Here are some other notable premarket movers: