Markets Mixed as New Year Holidays Take Hold
As the world rings in the new year, Asian markets are experiencing a mixed bag, with some trading closed for the holidays. In Sydney, the S&P/ASX 200 took a 0.9% hit, falling to 8,159.10. Meanwhile, Hong Kong’s Hang Seng eked out a 0.1% gain, reaching 20,059.95.
China’s Manufacturing Slump Continues
Despite Beijing’s stimulus efforts, China’s manufacturing sector remains sluggish. The country’s Purchasing Managers’ Index (PMI) slipped to 50.1 in December, down from 50.3 the previous month. While the reading remains above 50, indicating expansion, it’s a sign that the economy is still struggling to gain traction.
US Markets End Year on a Sour Note
On Monday, US stocks closed broadly lower, with the S&P 500 falling 1.1% to 5,906.94. The Dow Jones Industrial Average dropped 1% to 42,573.73, while the Nasdaq composite ended 1.2% lower, at 19,486.78. Big Tech companies, including Apple and Microsoft, were among the biggest losers, with their pricey valuations weighing heavily on the market.
Boeing Takes a Hit After Tragic Crash
A devastating plane crash in South Korea, which killed 179 people, sent Boeing’s stock plummeting 2.3%. The incident has raised concerns about the safety of the company’s 737-800 aircraft, and airlines that operate these jets are feeling the impact.
A Stellar Year Comes to a Close
Despite the recent downturn, 2024 has been a remarkable year for markets, driven by a growing economy, solid consumer spending, and a strong jobs market. Wall Street expects companies within the S&P 500 to report broad earnings growth of more than 9% for the year.
Inflation Concerns Linger
As the year draws to a close, investors are keeping a close eye on inflation, which has cooled to near the Federal Reserve’s 2% target. However, President-elect Donald Trump’s threats to hike tariffs have added to worries about the potential for inflation to reignite.
A Quiet Week Ahead
With the New Year holiday shortened trading week, investors have little corporate and economic news to review. US markets will be closed on Wednesday, and the few reports due out later in the week will provide a snapshot of US construction spending and manufacturing activity.
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