Market Recap: S&P 500 Snaps 3-Week Winning Streak Amid Mixed Performance
The U.S. stock market closed with mixed results on Friday, December 13, 2024, capping off a rare bumpy week that saw the S&P 500 snap its three-week winning streak. Despite the recent volatility, major indexes remain significantly higher for the year, reflecting the robust bull market of 2024.
Major Index Performance
The S&P 500 (^GSPC) ended the day virtually unchanged, dipping a mere 0.16 points (less than 0.1%) to close at 6,051.09. This minimal movement belies the index’s overall weekly performance, which saw a decline of 39.18 points or 0.6%. Despite this setback, the benchmark index has surged an impressive 26.9% year-to-date.
The Dow Jones Industrial Average (^DJI) experienced a slight decline, falling 86.06 points (0.2%) to finish at 43,828.06. The blue-chip index had a more challenging week, dropping 814.46 points or 1.8%. However, it still boasts a robust 16.3% gain for the year.
In contrast, the tech-heavy Nasdaq Composite (^IXIC) managed to eke out a gain, rising 23.88 points (0.1%) to close at 19,926.72. The Nasdaq was the only major index to post a weekly gain, up 66.95 points or 0.3%. Year-to-date, it leads the pack with an impressive 32.7% increase.
The Russell 2000 (^RUT), which tracks smaller companies, fell 14.19 points (0.6%) to 2,346.90, continuing its recent underperformance with a 2.6% weekly decline.
Notable Stock Movements
Broadcom Inc. (AVGO) was the star performer of the day, surging an astounding 24.43% to close at $224.80. The semiconductor giant beat Wall Street’s profit expectations and provided an optimistic forecast, particularly highlighting its artificial intelligence (AI) products. This stellar performance catapulted Broadcom into the exclusive club of companies with a market capitalization exceeding $1 trillion.
Other chip stocks rode Broadcom’s coattails, with Marvell Technology (MRVL) rising 11% and Micron Technology (MU) gaining about 4%. The iShares Semiconductor ETF (SOXX) reflected the sector’s strength, climbing nearly 3%.
NVIDIA Corporation (NVDA), a bellwether for AI-related stocks, experienced a 2.25% decline, closing at $134.25, despite initial gains early in the session. This movement suggests some profit-taking in the high-flying AI sector.
In the retail space, RH (RH), formerly known as Restoration Hardware, saw its shares surge 16.95% to $446.04 after raising its revenue forecast, indicating strong consumer spending in the luxury segment.
Tesla, Inc. (TSLA) continued its volatile run, gaining 4.34% to close at $436.23, as investors remain bullish on the electric vehicle maker’s long-term prospects.
Market Dynamics and Upcoming Events
The week’s mixed performance comes as investors digest recent gains and assess the market’s trajectory heading into the final weeks of 2024. The slight pullback in major indexes suggests a healthy consolidation after reaching record highs, with market participants likely taking some profits off the table.
Looking ahead, market watchers will be keenly focused on several potential market-moving events:
1. The Federal Reserve’s final meeting of the year, scheduled for next week, where investors will scrutinize any signals about the future path of interest rates.
2. Key economic data releases, including the Consumer Price Index (CPI) and retail sales figures, which could provide insights into inflation trends and consumer spending patterns.
3. Earnings reports from major retailers, which could offer a glimpse into holiday shopping trends and overall consumer sentiment.
4. Ongoing developments in artificial intelligence and their impact on the technology sector, as highlighted by Broadcom’s strong performance.
Conclusion
As 2024 draws to a close, the U.S. stock market remains in a strong position despite the week’s mixed performance. The S&P 500’s 26.9% year-to-date gain and the Nasdaq’s 32.7% surge underscore the remarkable resilience of equities in the face of various economic challenges. However, investors should remain vigilant as market dynamics can shift rapidly, especially with key economic events on the horizon and the continued evolution of transformative technologies like AI.
