STORY: U.S. stocks sank on Monday, as shares of major tech companies dropped ahead of this week’s earnings and investors awaited the Federal Reserve’s first two-day policy meeting of the year.
The Dow closed down more than three-quarters of a percent, the S&P slid 1.3% and the Nasdaq plunged almost 2%.
Liz Miller, President and Founder of Summit Place Financial Advisors, says Monday’s pullback comes after an unexpectedly strong start to the year.
“We’re into the last couple days of the month and it’s been a very surprising January. We’ve seen not just double-digit moves off of the bottom, we’ve seen some stocks moving 20, 30 percent in this month alone after the lows we saw in 2022. We felt at Summit Place that 2022 was overdone and that there was plenty of upside in this market, but we expect the market to pause here, and like many professional investors, we’re actually getting prepared for a more difficult February potentially - and I think that’s exactly what we’re seeing in the market today.”
Shares of Apple, Amazon and Google parent Alphabet, which are due to post results later in the week, all slumped.
Tesla dropped more than 6% after weeks of rallying. The stock came under presser after Ford announced price cuts Monday on its popular Mustang Mach-E electric SUV, weeks after Tesla slashed prices up to 20% on its vehicles.
And shares of Johnson & Johnson dropped 3.7% after a federal appeals court rejected the healthcare giant's strategy to use bankruptcy to resolve multibillion-dollar lawsuits over claims its talc products cause cancer.