Markets Struggle to End 2024 on a High Note
As the year draws to a close, the stock market is experiencing a slump, with all three major indexes – the S&P 500, Nasdaq Composite, and Dow Jones Industrial Average – falling on Monday. The benchmark S&P 500 dropped 1.6%, while the tech-heavy Nasdaq Composite slid 1.7%. The Dow Jones Industrial Average was off more than 1.6%.
The “Santa Claus” Rally Fails to Materialize
Historically, the seven trading days beginning December 24 have been a strong period for the S&P 500, with an average gain of 1.3%. However, this year, the S&P 500 is down less than 0.1% during this period, dashing hopes of a “Santa Claus” rally.
Stock Market Performance in 2024
Despite the current slump, 2024 has been a remarkable year for the stock market, with the S&P 500 up over 25%, the Nasdaq increasing over 30%, and the Dow rising a more modest 14%. The year has seen a record 57 all-time highs for the S&P 500.
Tech Stocks Lead the Decline
The “Magnificent Seven” tech stocks, including Apple, Alphabet, Microsoft, Tesla, and Nvidia, were all down over 1% on Monday, leading the losses. The Information Technology sector, a key driver of the 2024 stock market rally, was off about 1.8%.
Housing Market Sees a Boost
In a separate development, the Pending Home Sales Index rose 2.2% in November, its highest reading since February 2023, according to the National Association of Realtors. This marks the fourth straight month of gains, with pending home sales up 6.9% compared to November 2023.
Trading to be Closed on Thursday
The New York Stock Exchange and the Nasdaq announced that trading will be closed on Thursday, January 9, in observance of the National Day of Mourning for Former President Jimmy Carter, who passed away on Sunday at the age of 100.
Economic Data and Earnings
This week, investors will be keeping an eye on economic data, including the MNI Chicago PMI, pending home sales, and Dallas Fed manufacturing activity. There are no notable earnings scheduled for release.
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