(Bloomberg) — US stock futures and Treasuries dropped as traders trimmed their bets on interest-rate cuts and speculated that the recent rally has been overdone.
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Futures on the Nasdaq index lost 1%. Apple Inc. fell in premarket trading after an analyst at Barclays Plc warned that iPhone demand is cooling. The 10-year Treasury yield rose seven basis points to 3.95%. Brent crude surged more than 2% after Iran dispatched a warship to the Red Sea.
The first trading day of the new year brought 2023’s scorching rally to a halt after a more than $8 trillion surge in the S&P 500 last year.
“It’s not uncommon for markets to pause to digest a bull run of the magnitude experienced in the fourth quarter just ended,” said Oppenheimer Asset Management’s Chief Investment Strategist John Stoltzfus. “In fact it would appear to us to make good sense for markets to pause considering the run-up in stock prices.”
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