In a concerning turn of events, the Nasdaq has experienced a nearly 4% decline in just three trading days, resulting in a staggering loss of $600 billion in market capitalization. This downturn erases all gains made since December 13th, highlighting the volatility in the market.
Adding to the unease, the Magnificent 7, a group of prominent tech stocks, are down approximately 5% from their recent highs, reasserting their influence over the broader market. The Nasdaq’s reliance on these key players appears to be back in full force.
Further contributing to the negative sentiment, Walgreens, a major pharmacy chain, announced a 47.90% cut in its dividend, ending a 48-year streak of consecutive annual dividend increases. Previously considered a dividend aristocrat, this move underscores the challenges facing even established companies.
Google, in a surprising development, is rumored to be considering laying off 30,000 employees following new AI innovations, according to CNBC TV 18. This potential workforce reduction adds to the growing uncertainties in the tech sector.
Meanwhile, concerns about the financial landscape persist as serious delinquency in multifamily housing and declining confidence in credit card repayment among Americans come to light. A recent LendingTree Credit Card Confidence Index indicates that only half of American credit card users believe they can fully pay off their December balances, reaching an all-time low of 51%.
The surge in national credit card balances to a record $1.08 trillion, coupled with average interest rates hitting a 30-year high of 21%, reflects the impact of rising debt, inflation, and interest rates on consumer confidence. A Bankrate survey further reveals an increase in cardholders carrying month-to-month debt, with the average credit card debt per customer now standing at $6,088.
As stocks face increased volatility and economic uncertainties persist, investors brace for a challenging period ahead.
The Nasdaq is now down nearly 4% from its high just 3 trading days ago.
In other words, the index has erased $600 billion of market cap in 3 days.
This also means that the Nasdaq has erased all of its gains back to December 13th.
Furthermore, the Magnificent 7 are down ~5%… pic.twitter.com/QDnhaF6vej
— The Kobeissi Letter (@KobeissiLetter) January 3, 2024
Good Morning Everyone! Walgreens one of the world’s largest pharmacy chains just cut its dividend by 47.90%.
This ends a 48-year streak of consecutive annual dividend increases.
It is no longer a dividend aristocrat.
It was previously the most generous dividend payer in the… pic.twitter.com/MWxL92U3Ca
— Genevieve Roch-Decter, CFA (@GRDecter) January 4, 2024
https://twitter.com/unusual_whales/status/1742914025862893851
Serious Delinquency
Multifamily – Freddie pic.twitter.com/3sbNbXT3Ib— Win Smart, CFA (@WinfieldSmart) January 4, 2024
Declining Confidence in Credit Card Repayment Among Americans
Recession Watch: Slightly Lower Interest Rates Will Make Zero Difference