Holiday Hangover Grips Stocks & Bonds in Worst Start Since 2003
What You Need to Know The S&P 500 fell for the first time in 10 weeks, snapping the longest streak of gains in almost 20 years. In the stock market, the pullback followed a flurry of buying that had sat uneasily with Wall Street contrarians. Viewed through the lens of positioning, the picture arguably remains bearish. This isn’t how Wall Street hoped to ring in 2024. Loaded up and bullish after a spirited holiday rally, investors were smacked with old worries in the new year, among them fresh questions about the path of Federal Reserve policy. The result: a cross-asset drubbing that surpassed any to start a year in at least two decades. The S&P 500 fell for the first time in 10 weeks, snapping the longest streak of gains in almost 20 years. Treasuries and corporate credit dropped the most since October. For traders primed for interest-rate cuts in March, a hotter-than-forecast jobs report potentially blurred the outlook further on Friday. But the seeds of disillusionment were sown weeks before, when investors shed bearish wagers and dived into risky assets of all stripes. With the pool of new buyers running low, bulls were left to contend with a nagging sense they’d...