In-depth look at yesterday's US Stock Market Close (March 14, 2024):

On Thursday, March 14th, 2024, the US stock market closed down slightly:

  • S&P 500: Down 0.3% to 5,150.48
  • Dow Jones Industrial Average: Down 0.4% to 38,905.66
  • Nasdaq Composite: Down 0.3% to 16,128.53

The main factor behind the decline was a stronger-than-expected Producer Price Index (PPI) report, which fueled inflation concerns and led investors to pull back. This follows a similar trend earlier in the week with the Consumer Price Index (CPI) report.

US Stock Market is closed today i.e. on the 15th March 2024.

Market Recap:

  • The US stock market closed modestly lower on Thursday, with all major indexes dipping around 0.3-0.4%.
  • This follows a similar trend earlier in the week, where inflation concerns weighed on investor sentiment.

Reasons for the Decline:

  • The primary driver for the decline was a stronger-than-expected Producer Price Index (PPI) report. This data measures inflation at the wholesale level and suggested that inflation might be more persistent than initially anticipated.
  • Investor worries grew as the PPI report followed a hotter-than-expected Consumer Price Index (CPI) released earlier. The combined effect raised concerns about the Federal Reserve potentially raising interest rates sooner than expected to combat inflation.

Important Business News of March 14, 2024:

  1. Retail Sales Miss Expectations: While positive, US retail sales for February rose only 0.6%, which was slightly lower than analysts’ forecasts. This could indicate a potential slowdown in consumer spending, a key driver of the US economy.
  2. Eni’s Boost Signals Energy Sector Confidence: Italian energy giant Eni announced a $1.2 billion share buyback and a dividend increase, reflecting confidence in its future prospects. This positive news could benefit the broader energy sector.
  3. Foxconn’s AI Growth Outlook: Taiwanese manufacturer Foxconn expects significant growth fueled by surging demand for Artificial Intelligence (AI) products. This bodes well for tech-related stocks and highlights the ongoing trend towards AI adoption.
  4. BMW Sales Disappoint: BMW’s automotive unit missed sales targets, raising concerns about the health of the auto industry. This could put downward pressure on automaker stocks.
  5. Industrial Production Data on Horizon: Next week’s key economic data release includes Industrial Production figures, which will provide insights into manufacturing activity and overall economic health.
US Stock Market 14 Mar 2024

Further, The tech sector faced continued selling pressure. Chipmakers, led by a 3.2% drop in Nvidia (NVDA), dragged the Philadelphia Semiconductor Index (SOX) down nearly 2% to its monthly low. Nvidia has fallen almost 10% since its record intraday high of $974 last week. Banks and small-cap stocks also underperformed.

Analyst Peterson believes this is a potential correction for tech stocks following a key reversal day for Nvidia last Friday. He ponders whether this tech pullback will spread to the broader market or if investors will simply shift their focus to other sectors.

Meanwhile, oil prices continued their upward trend this week. WTI crude oil futures (/CL) rose 1.7%, closing just above $81 per barrel, its highest point since early November. This surge is attributed to a surprise decline in US oil inventories and worries about supply disruptions caused by Ukrainian attacks on Russian refineries.

Looking Ahead:

Investors will continue to monitor inflation data and the Federal Reserve’s response in the coming weeks. Additionally, next week’s Industrial Production report will be crucial for gauging the strength of the manufacturing sector.

It’s difficult to predict exactly what will happen in the US stock market on Monday, March 18th, 2024.  However, here’s what we can analyze based on current information:

  • Market Sentiment: Following a down week due to inflation concerns, the market might open cautiously optimistic on Monday, reflecting a “wait and see” approach.
  • Pre-Market Indicators: Keep an eye on pre-market futures movement on Monday morning. Upward movement could indicate a positive opening, while downward movement could suggest a continuation of the downward trend.
  • Economic Data: There aren’t any major economic data releases scheduled for Monday itself. However, upcoming releases throughout the week, like Industrial Production data, might influence market behavior.
  • Global Events: Keep yourself updated on any major global events over the weekend that could impact investor sentiment and market movement on Monday.

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