Market Volatility Marks Final Trading Session of 2024
As the year comes to a close, US stocks took a hit, with the S&P 500 extending its decline after opening more than 1% lower. Technology stocks, which have driven a 25% advance in the S&P 500 this year, were among the biggest losers. Super Micro Computer Inc., Boeing Co., and Broadcom Inc. weighed heavily on the index.
Tech Giants’ Rally Falters
Despite the recent dip, few analysts expect the rally to end, with none of the 19 strategists tracked by Bloomberg predicting a decline in the S&P 500 next year. “The US remains the place to be,” said Nicolas Domont, a fund manager at Optigestion in Paris. “Growth stocks continue to outperform, and earnings forecasts are good, so there are good reasons to remain optimistic.”
Global Markets Feel the Pinch
European stocks also retreated, with the Stoxx 600 index falling 0.6%. Asian stocks snapped a five-day winning streak, and trading volumes were thinner due to the holiday season. “There’s a little bit of trepidation heading into year-end, owing in part to uncertainty over how the international trade picture may take shape in 2025,” said Tim Waterer, chief market analyst at Kohle Capital Markets Pty.
Investors Take Risk Off the Table
As the year draws to a close, some traders are taking a cautious approach, reducing their exposure to riskier assets. Trading in Europe’s equity benchmark was about half of the 30-day average. The DAX benchmark in Germany, meanwhile, is on course for a 19% annual advance, outperforming peers in the UK and France.
Boeing Crash Sends Shockwaves
Shares in Jeju Air plummeted 8.7% in Seoul to a record low after a Boeing Co. 737-800 aircraft operated by the carrier crashed on Sunday, killing all but two of the 181 occupants. Boeing’s stock dropped as much as 5.1% in US premarket trading before paring its losses. Investigators are focusing on a possible bird strike or landing-gear failure.
Oil and Gold Prices React to 2025 Risks
Oil prices edged higher as traders focused on potential risks in 2025. Crude is heading for a loss this year, with trading confined to a narrow range since mid-October. Gold, on the other hand, is set for one of its best years.
Key Events This Week
- China manufacturing PMI, non-manufacturing PMI (Tuesday)
- New Year’s Day holiday (Wednesday)
- US construction spending, jobless claims, manufacturing PMI (Thursday)
- US ISM manufacturing, light vehicle sales (Friday)
Market Snapshot
- S&P 500: -1.6%
- Nasdaq 100: -1.9%
- Dow Jones Industrial Average: -1.6%
- Stoxx Europe 600: -0.6%
- MSCI World Index: -1.4%
- Bloomberg Dollar Spot Index: little changed
- Euro: -0.2% to $1.0402
- British pound: -0.2% to $1.2553
- Japanese yen: +0.6% to 156.92 per dollar
- Bitcoin: -1.6% to $91,707.62
- Ether: -0.9% to $3,315.34
- 10-year Treasuries: -8 basis points to 4.54%
- Germany’s 10-year yield: -3 basis points to 2.37%
- Britain’s 10-year yield: -3 basis points to 4.60%
- West Texas Intermediate crude: +0.9% to $71.24 a barrel
- Spot gold: -0.6% to $2,606.35 an ounce
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