The benchmark S&P 500 shed nearly 0.6%, Dow Jones Industrial Average added just above the flatline, and the tech-heavy Nasdaq Composite led the losses, shedding nearly 1.6%

US stocks dropped Tuesday, setting Wall Street up for a downbeat start to 2024 after a winning year that left the S&P 500 just short of a new record high.

The benchmark S&P 500 shed nearly 0.6%, while Dow Jones Industrial Average added just above the flatline. The tech-heavy Nasdaq Composite led the losses, shedding nearly 1.6%.

The rally in stocks stalled on Friday after two months of gains that helped the major gauges close 2023 with strong yearly gains. Plus, the S&P 500 notched its ninth consecutive weekly win, the longest streak since 2004, and is moving toward taking out its all-time closing high of 4,796.56.

Tech stocks lost ground after Barclays analysts downgraded their rating on Apple’s stock, citing concerns about demand for new iPhones. Apple shares dropped nearly 4% as tech stocks slipped.

Economic updates this week could also put the rally to the test, with the December jobs report due Friday watched for its potential to sway the Fed’s thinking. Investors’ bets that interest rate cuts will come fast and deep in 2024 have boosted stocks.

Elsewhere in markets, oil prices gained amid the war in the Middle East. A wider conflict could close crucial waterways for oil transportation and disrupt trade flows. West Texas Intermediate crude and Brent crude futures jumped more than 1% as tensions rose.

Energy markets were unable to escape the wider pressure seen on risk assets with equity markets also weaker. The weakness in oil comes despite a ratcheting up in tensions in the Middle East, said ING analysts in a client note.

Meanwhile, bitcoin prices climbed nearly 3% to top $45,000 for the first time since early 2022 as hopes grew that the SEC will soon approve a spot bitcoin ETF.