Stock Market Today: Indexes Mixed as Year-End Rally Pauses
As we approach the final trading days of 2024, the stock market is showing mixed signals, with major indexes taking a breather from their recent rally. On Friday, December 27, 2024, investors are closely watching market movements, economic indicators, and corporate news that could impact their portfolios heading into the new year.
Current Market Performance
The three major U.S. stock indexes are displaying divergent trends in today’s trading session:
– The Dow Jones Industrial Average is showing resilience, up 0.1% or 52 points, continuing its five-day winning streak.
– The S&P 500 is flat, pausing after recent gains that have pushed it up 1.6% for the week.
– The Nasdaq Composite is also flat, but remains up 2.1% for the week, outperforming other indexes.
This mixed performance comes as the market digests the strong gains achieved throughout 2024. The S&P 500 has climbed nearly 28% year-to-date, while the tech-heavy Nasdaq has surged an impressive 34%. The Dow Jones Industrial Average, though lagging its counterparts, has still posted a solid 16% gain for the year.
Key Market Movers and Stock News
Several stocks are making significant moves today, capturing investors’ attention:
1. Rigetti Computing (RGTI): Shares have surged 36.04% to $15.44, leading the day’s gainers.
2. SoundHound AI (SOUN): The stock is up 19.71% to $24.23, continuing the strong performance of AI-related companies.
3. Nissan Motor Co. (NSANY): The Japanese automaker’s stock has jumped 16.26% to $7.08, following recent merger talks with Honda.
4. MicroStrategy (MSTR): The bitcoin proxy has fallen 4.78% to $341.05, reflecting volatility in the cryptocurrency market.
5. NVIDIA (NVDA): The chip giant’s stock is slightly down 0.21% at $139.93, but remains a focus for investors due to its AI leadership.
Upcoming Market Events and Economic Indicators
Investors are keeping a close eye on several upcoming events that could impact market sentiment:
1. Federal Reserve Policy: The Fed has recently cut interest rates by three-quarters of a percentage point, and markets expect gradual rate cuts to continue in 2025. However, recent inflation data may influence the pace of these cuts.
2. Economic Data Releases: Weekly jobless claims came in at 219,000, slightly below the expected 225,000, indicating continued resilience in the labor market.
3. Corporate Earnings: As we approach the end of Q4, investors are preparing for the upcoming earnings season, which will provide insights into company performances and future outlooks.
4. Political Landscape: The market is factoring in potential policy changes under the incoming Trump administration, including proposed tax cuts and tariffs, which could significantly impact various sectors.
Market Outlook and Expert Opinions
As we look towards 2025, market experts are cautiously optimistic but highlight several factors that could influence stock performance:
– Seema Shah, Chief Global Strategist at Principal Asset Management, notes that “U.S. strength remains undiminished,” pointing to robust GDP growth and moderating inflation.
– Callie Cox, Chief Market Strategist at Ritholtz Wealth Management, cautions that while markets expect a favorable environment of controlled inflation and gradual rate cuts, “Reality isn’t that cut and dry.”
– David Sekera, Chief U.S. Market Strategist for Morningstar, identifies potential tariffs as “the most significant wild card on the table for 2025.”
Conclusion
As 2024 draws to a close, the stock market’s impressive performance has set a high bar for the coming year. While economic indicators remain largely positive, investors should remain vigilant of potential headwinds, including policy changes, inflation trends, and global economic factors. The interplay between these elements will likely shape market dynamics in the early months of 2025, offering both opportunities and challenges for investors navigating the evolving financial landscape.
