End of Day Market Recap: Tuesday, December 17, 2024
Market Performance: Mixed Results Amid Fed Anticipation
As the trading day comes to a close on Tuesday, December 17, 2024, the U.S. stock market exhibited mixed performance. Investors remain cautious as they await the Federal Reserve’s final policy decision of the year, scheduled for tomorrow.
S&P 500: The broad market index edged down 0.36% to 6,052.10 points, retreating slightly from its recent all-time highs.
Dow Jones Industrial Average: The blue-chip index experienced a more significant decline, falling 0.69% to 43,417.77 points. This marks the Dow’s eighth consecutive day of losses, its longest losing streak since February 2020.
Nasdaq Composite: The tech-heavy index showed more resilience, dipping only 0.22% to 20,130.26 points, maintaining much of its recent gains.
Key Market Drivers and Upcoming Events
1. Federal Reserve Meeting: All eyes are on the Fed’s two-day policy meeting concluding tomorrow. Markets are pricing in a 95% chance of a 25 basis point rate cut, according to CME Group’s FedWatch tool. Investors will be closely watching Chair Jerome Powell’s press conference for insights into future policy moves.
2. Economic Data: Today’s release of retail sales data for November, expected to show a 0.5% monthly increase, will provide crucial insights into consumer spending habits. Additionally, industrial production figures are due, offering a glimpse into the manufacturing sector’s health.
3. Inflation Concerns: The market remains sensitive to inflation data, with the Fed’s preferred Personal Consumption Expenditures (PCE) inflation gauge for November scheduled for release on Friday.
Major Stock Movements and Corporate News
1. Tesla (TSLA): Shares surged 2.76% to $475.80, continuing its strong performance in 2024 with a year-to-date gain of 41.4%.
2. Nvidia (NVDA): The chip giant’s stock fell 1.77% to $129.66 amid concerns over a potential slowdown in AI spending and increased competition. Nvidia is facing an antitrust probe in China regarding its $7 billion acquisition of Mellanox.
3. Apple (AAPL): The tech behemoth saw a modest gain of 0.74% to $252.89, trading near its all-time highs despite concerns over the iPhone 16 upgrade cycle.
4. Microsoft (MSFT): Shares dipped slightly as the company’s guidance for slower cloud computing growth continues to impact investor sentiment.
5. Broadcom (AVGO): The stock experienced a significant drop of 6.12% following its recent surge on announcements of major AI chip deals.
6. Teva Pharmaceutical Industries (TEVA): Emerged as a top gainer, surging 26.38% to $20.87 on positive drug development news.
Market Outlook and Analyst Perspectives
As 2024 draws to a close, the S&P 500 is on track for an impressive year-to-date gain of over 27%, its best performance since 2019. However, some analysts are cautioning about potential market fragility and the possibility of a correction.
Talley Leger, chief market strategist at the Wealth Consulting Group, noted, “I would love to see a meaningful pullback in equities. We could get a little bit of turbulence in 2025.”
Investors are also closely monitoring the yield on the 10-year Treasury note, which rose to 4.389%, potentially impacting borrowing costs and market dynamics.
As we head into the final weeks of 2024, market participants remain focused on the Fed’s policy decisions, ongoing concerns about inflation, and the potential for year-end rallies in various sectors.
Looking Ahead
With the Federal Reserve’s decision looming and crucial economic data on the horizon, market volatility may persist in the short term. Investors should stay alert to potential shifts in monetary policy, inflationary pressures, and sector rotations as we approach the new year.
The market’s resilience in the face of various challenges throughout 2024 has been remarkable, but as always, vigilance and diversification remain key strategies for navigating the ever-changing financial landscape.
