Stock Market Today: December 26, 2024 – Market Trends and Major News
Market Indexes Performance
As of Thursday, December 26, 2024, the U.S. stock market is experiencing a slight downturn following the Christmas holiday break. The S&P 500, Dow Jones Industrial Average, and Nasdaq Composite are all trading lower in the morning session. According to the latest data:
– S&P 500: 6,024.82, down 15.22 points (-0.25%)
– Dow Jones Industrial Average: 43,209.53, down 87.50 points (-0.20%)
– Nasdaq Composite: 19,962.92, down 68.21 points (-0.34%)
This slight dip comes after a strong performance on Tuesday, December 24, when the market closed early for Christmas Eve. The S&P 500 and Nasdaq had wrapped up that session with their third consecutive day of gains, primarily driven by megacap and growth stocks.
Santa Claus Rally and Year-End Expectations
Investors are closely watching for signs of the “Santa Claus rally,” a phenomenon that typically occurs in the last five trading days of December and the first two of January. Historically, the S&P 500 has gained an average of 1.3% during this period since 1969, according to the Stock Trader’s Almanac.
The current market sentiment is cautiously optimistic, with hopes for a strong finish to the year. However, it’s worth noting that U.S. stocks have faced some challenges this month, following election-led gains in November. The market is also contending with the Federal Reserve’s projection of fewer interest rate cuts in 2025.
Major Stock News and Market Movers
Several key stocks are making headlines and influencing market movements:
1. Nvidia (NVDA): Down 0.86% to $139.01, showing a slight decline in premarket trading.
2. Tesla (TSLA): Trading at $456.68, down 1.21%, but still up significantly for the year.
3. Apple (AAPL): Continues to be a major market influencer, though specific performance data for today is not available.
4. Alphabet (GOOGL): The Google parent company has seen a slight dip in premarket trading.
5. Amazon (AMZN): Another tech giant contributing to the market’s overall performance.
6. Microsoft (MSFT) and Meta Platforms (META): Both companies have been significant contributors to the S&P 500’s impressive 28.4% total return this year.
It’s noteworthy that the “Magnificent Seven” stocks (including those mentioned above) have accounted for more than half of the S&P 500’s total return in 2024. Without these seven stocks, the benchmark index’s total return would have been 13.2% for the year.
Upcoming Market Events
Investors should keep an eye on several important events that could impact market performance:
1. Weekly Jobless Claims Report: The Labor Department’s data on weekly jobless claims is due before the market opens today. However, analysts warn that recent volatility in claims data might make it challenging to get a clear view of the job market.
2. Year-End Trading Patterns: With low liquidity expected in the final days of the year, market watchers are anticipating potential impacts from tax-loss harvesting and the investing of year-end bonuses.
3. Federal Reserve Lawsuit: In a significant development, major banks and business groups have sued the Federal Reserve, alleging that the central bank’s annual “stress tests” of Wall Street firms violate the law. The outcome of this legal challenge could have far-reaching implications for financial regulation and market stability.
Market Outlook
As we approach the end of 2024, the stock market’s performance remains a topic of intense interest. The current slight downturn is being closely monitored, especially in light of the anticipated Santa Claus rally. Investors are balancing optimism from the year’s strong overall performance against concerns about potential economic headwinds in 2025.
The market’s resilience in the face of various challenges throughout 2024 has been notable. However, as we look towards the new year, factors such as Federal Reserve policies, global economic conditions, and ongoing legal challenges in the financial sector will continue to play crucial roles in shaping market trends.
For the latest updates on why the market is up today or for more detailed market news today, investors are advised to keep a close eye on financial news outlets and consult with financial advisors for personalized investment strategies.
