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February 5 Market Report: Executive Mosaic’s GovCon Index and Wall Street Sink, Hope of Early Rate Cut Fades

February 5 Market Report: Executive Mosaic’s GovCon Index and Wall Street Sinks, Hope of Early Rate Cut Fades

Executive Mosaic’s GovCon Index slipped further to $4,615.41 (-0.77%) as investors’ confidence sank to start the week. Fed Chairman Jerome Powell confirmed on Sunday that no rate cut is coming in March. The Dow Jones Industrial Average (-0.71%), the S&P 500 (-0.32%), and the Nasdaq Composite (-0.20%) tumbled in unison.

In his interview on CBS’ 60 Minutes, Powell said he anticipates multiple rate cuts in 2024 but won’t start in March. He also urged Americans to be patient with high-interest rates for now. With the chances of an early rate cut down to 14%, the ten-year Treasury yield rose to 4.16%.

The mood change from a winning week was evident. On Monday, 83% of NYSE stocks declined, while 72% of Nasdaq constituents closed in the red. McDonald’s (NYSE: MCD) was in the limelight for the presentation of its fourth-quarter results.

On the GovCon Index, 80% of its constituents landed in the negative zone. The top three decliners were CGI (NYSE: GIB), Maximus (NYSE: MMS), and Palantir Technologies (NYSE: PLTR). Boeing (NYSE: BA) declined 1.31% following the discovery of new problems, this time in 737 fuselages. Kratos Defense & Security Solutions (Nasdaq: KTOS) rose 2.35% to lead the six advancers.      

Powell assured during his interview that the Fed’s action is all part of returning to a place of price stability when interest rates can be low again on a sustainable basis. The Fed Chair said, “We just want some more confidence before we take that very important step of beginning to cut interest rates.”

Market Summary

INDEX PRICE NET CHANGE % CHANGE
GovCon Index Daily Total 4,615.41 -35.68 -0.77%
Dow Jones Industrial Average 38,380.12 -274.30 -0.71%
S&P 500 4,942.81 -15.80 -0.32%
NASDAQ 15,597.68 -31.27 -0.20%

Top 5 GovCon Index Daily Percentage Performers

SYMBOL PRICE NET CHANGE % CHANGE
KTOS 17.44 0.40 2.35%
RTX 92.24 0.26 0.28%
BAESY 60.38 0.14 0.23%
GD 265.52 0.25 0.09%
LHX 207.14 0.14 0.07%

Top 5 GovCon Index Daily Net Performers

SYMBOL PRICE NET CHANGE % CHANGE
KTOS 17.44 0.40 2.35%
RTX 92.24 0.26 0.28%
GD 265.52 0.25 0.09%
LHX 207.14 0.14 0.07%
BAESY 60.38 0.14 0.23%

Top 5 GovCon Index Daily Percentage Decliners

SYMBOL PRICE NET CHANGE % CHANGE
GIB 111.8 -4.12 -3.55%
MMS 78.63 -1.84 -2.29%
PLTR 16.72 -0.30 -1.76%
HON 193.01 -3.10 -1.58%
CG 40.31 -0.64 -1.56%