Market Momentum Slows as Year Comes to a Close
As the final week of 2024 gets underway, the stock market is experiencing a slowdown in momentum. The S&P 500, Nasdaq Composite, and Dow Jones Industrial Average all fell on Monday, with the tech-heavy Nasdaq Composite leading the decline with a 1.2% drop.
The “Santa Claus” Rally Falls Flat
Historically, the seven trading days beginning on December 24 have been a strong period for the S&P 500, with an average gain of 1.3% since 1950. However, this year’s “Santa Claus” rally has failed to materialize, with the S&P 500 down nearly 1% so far.
Wall Street Strategists Remain Optimistic
Despite the current market downturn, Wall Street strategists are maintaining their positive outlook for 2025. Citi US equity strategist Scott Chronert believes that the fundamental drivers of the market rally remain intact, and Fundstrat head of research Tom Lee agrees, stating that nothing has fundamentally changed.
Billionaire Investor Bill Ackman Sees Opportunity in Fannie Mae and Freddie Mac
Billionaire investor Bill Ackman has expressed optimism about the potential for Fannie Mae and Freddie Mac to be removed from conservatorship, sending shares of both companies soaring nearly 30% on Monday.
Oil Prices Expected to Fall in 2025
According to JPMorgan’s Global Commodities Strategy team, oil prices are expected to decline in 2025 due to growing global supply. The team predicts that Brent crude will average $73 in 2025, down from $80 in 2024.
Nvidia Shares Rebound on Report of $7 Billion Commitment from ByteDance
Nvidia shares reversed direction on Monday after a report that ByteDance plans to spend $7 billion on its AI chips in 2025, despite US export restrictions on goods to China.
US Natural Gas Futures Soar on Expectations of Colder January
US natural gas futures for February delivery surged on Monday, rising as much as 20% as demand for fuel rose amid expectations of a colder January.
Housing Market Shows Signs of Life
The Pending Home Sales Index rose 2.2% in November, its highest reading since February 2023, as buyers shrugged off elevated mortgage rates and took advantage of higher inventory levels.
Markets Prepare for Final Trading Days of 2024
As the year comes to a close, markets are hoping to recapture the momentum of this year’s gains. The S&P 500 is up over 25% in 2024, while the Nasdaq has increased over 30%.
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