Wall Street Stumbles as 2024 Ends with a Sour Note | Image Source: Images.pexels.com
NEW YORK, December 30, 2024 – Wall Street closed its doors on a negative territory on Monday, while the last negotiating session of the year reflected a general decline in the main indices. The flexible amplifier S; P 500 fell by 1.1%, marking its third consecutive decline per day, while the average industrial Dow Jones lost 1% and the Nasdaq composite repository 1.2%. Despite this setback, 2024 remains a stellar year for the shares, with the plagaamp S; P 500 en route for a 24% profit and the Nasdaq is expected to close nearly 30% higher for the year, according to FactSet.
Declining technological stocks
Big Tech’s actions were the main culprits behind Monday’s slide. Heavy goods vehicles such as Apple and Microsoft lost 1.3%, while Meta Platforms decreased 1.4%, Netflix decreased 0.8% and Amazon lost 1.1%. “The market seems to be gaining at the end of the year,” said Oliver Pursche, Senior Vice President of Wealthspire Advisors, New York. The communication technology and service sectors, which acquired 37.1% and 39.9% respectively in 2024, are facing pressure on sales, with ratings appearing to be stretched.
Boeing shares Sink Amid Tragedy
Boeing was facing new challenges as one of its 737-800 jets jumped on a runway in South Korea, resulting in a tragic loss of 179 lives. This incident prompted South Korea to undertake a security review of the 737-800 aircraft operated by local transportation. Boeing’s shares have declined by 2.3%, continuing an annual decline of more than 30%. Boeing airlines, such as United Airlines and Delta Air Lines, also experienced decreases of 1.4% and 0.9%, respectively. “This is another blow to Boeing’s reputation after a year of labour disputes and safety challenges,” said Richard Abrahams, an industry analyst.
Energy gains and stocks provide mixed signals
In the bond market, the 10-year Treasury return fell to 4.53%, or 4.63% on Friday, while the 2-year return fell to 4.25%, or 4.33%. Lower yields often support growth stocks, but commercial volumes are low due to the holiday season, limiting their impact. Meanwhile, US crude oil prices have risen by 0.6%, and natural gas prices have increased by 12%, increasing energy reserves. EQT Corp. led profits among energy producers, up 5.1%. ”Energy actions are still relatively good today, with natural gas producers taking advantage of commodity prices,” said Tom Lee, Chief Research Officer Fundstrat.
Global and geopolitical markets
Stock markets in Europe and Asia also declined on Monday, aligning themselves with Wall Street’s low performance. Investors remain cautious about geopolitical uncertainties and economic prospects by 2025. The inflation slowdown in 2024 reinforced investor optimism, bringing the Federal Reserve closer to its 2% target. However, recent concerns about potentially dominant inflation, fuelled by new President Donald Trump’s tariff threats, have tempered market sentiment. “Markets digest the prudent approach to tariff reductions in the midst of persistent inflation risks,” said Jeremy Siegel, Senior Economist at WisdomTree.
Annual trends and market outlook
Despite the recent withdrawal, 2024 has been a year of banners for American actions. Nasdaq is on track for its best annual performance since 2021, while S plagaamp; P 500 and Dow are ready for double-digit winnings. However, analysts warned of potential volatility early in 2025. “The likelihood of a correction next year increases,” Siegel told CNBC. Historically, a weak ending until December can indicate a rebound in early January, a phenomenon known as the Santa Claus rally. According to LPL Financial, the S plagaamp; P 500 recorded an average gain of 1.3% during the last days of trade in December and the first two days of January since 1950.
As markets prepare for a shorter business week due to New Year’s holidays, light trading volumes and investor profitability should prevail. Looking ahead, fourth quarter revenue reports will further clarify business performance and economic resilience until 2025. “Investors must assume a more volatile year,” said Pursche, citing the intensification of geopolitical tensions and the potential for regulatory change under Trump’s administration.
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