Market Outlook: Stocks, Bonds, and Bitcoin Take a Hit
As the holiday season approaches, investors are bracing themselves for a potentially volatile week ahead. U.S. stock futures are trending downward, following a disappointing close to the previous week. The Nasdaq, Dow Jones Industrial Average, and S&P 500 futures are all down, with the tech-focused index shedding 1.5% on Friday.
Boeing Stock Takes a Nose Dive
Boeing (BA) stock is plummeting, down around 3% in premarket trading, after one of its 737-800 planes crashed in South Korea, resulting in the loss of 179 lives. This latest setback comes on the heels of a string of challenges for the U.S.-based aircraft maker, including a machinists strike and a door plug detach during an Alaska Airlines flight. The company is still reeling from the fatal 737 MAX crashes in 2018 and 2019, and its shares have fallen a staggering 30% this year.
Tesla Shares Slip Ahead of Delivery Report
Tesla (TSLA) stock is also feeling the pressure, down 2% in premarket trading, as investors anxiously await the electric vehicle maker’s fourth-quarter delivery report later this week. Analysts predict Tesla will post deliveries of 510,000 units, representing 10% growth from the prior quarter and 5% year-over-year improvement. Despite surging over 70% since the presidential election, Tesla shares have fallen nearly 12% from their all-time high.
Economic Data Takes Center Stage
In this shortened trading week, investors will be keeping a close eye on several key economic indicators. The National Association of Realtors (NAR) Pending Home Sales Index is expected to rise by 0.7% in November, a slower pace than October’s 2% jump. Additionally, the S&P Case-Shiller Home Price Index and construction spending data will be released later in the week.
Bitcoin’s Price Plunge
Bitcoin (BTCUSD) continues to trade below $94,000, after retreating from the $100,000 level last week. While some analysts are optimistic about bitcoin’s prospects in 2025, the recent price drop has had a ripple effect on cryptocurrency-affiliated companies. Shares of MicroStrategy (MSTR), Riot Platforms (RIOT), MARA Holdings (MARA), and Coinbase Global (COIN) are all down, reflecting the uncertainty surrounding the cryptocurrency market.
Treasury Yields Remain Elevated
Yields on the 10-year Treasury note are hovering around 4.6%, despite a slight dip. With bond trading ending early on Tuesday and stock and bond markets closed on Wednesday for New Year’s Day, investors are preparing for a potentially tumultuous week ahead.
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