Stock Market Today: Major Indexes Slide as 2024 Comes to a Close
As we approach the final trading days of 2024, the stock market is experiencing a notable downturn, with major indexes sliding on Monday, December 30. This article provides a comprehensive overview of the current market situation, highlighting key performance indicators, upcoming events, and significant stock news that investors should be aware of.
Market Performance: A Year-End Stumble
The stock market is limping towards the finish line of what has otherwise been a strong year for equities. As of Monday morning:
– The S&P 500 dropped approximately 1.6%, now trading around 5,892.
– The Nasdaq Composite fell about 1.7%, hovering near 19,412.
– The Dow Jones Industrial Average declined by 1.6%, trading around 42,472.
Despite this recent pullback, it’s important to note that 2024 has been a remarkably positive year for stocks overall:
– The S&P 500 is up 25.2% year-to-date.
– The Nasdaq Composite has gained an impressive 31.4%.
– The Dow Jones Industrial Average has risen 14.1%.
Why is the Market Up Today? Key Factors Influencing the Downturn
Several factors are contributing to the current market decline:
1. Profit-Taking: As the year comes to a close, some investors are locking in gains from what has been a strong year for stocks.
2. Santa Claus Rally Disappointment: The anticipated “Santa Claus Rally,” typically observed in the last five trading days of the year and the first two of the new year, has failed to materialize so far. Since 1950, this period has averaged a 1.3% gain for the S&P 500, but the index is currently down 0.1% during this timeframe.
3. Treasury Yields: The 10-year Treasury yield, while retreating slightly, remains elevated at around 4.56%, putting pressure on stock valuations.
4. Tech Sector Weakness: Big tech names like Tesla (TSLA) and Nvidia (NVDA) experienced significant drops on Friday, contributing to the overall market decline.
Major Stock News
1. Boeing (BA): Shares of Boeing are down about 3% in premarket trading following a tragic crash of one of its 737-800 planes in South Korea, resulting in 179 fatalities. This incident adds to a series of setbacks for the company, including a recent machinists strike and ongoing recovery efforts from previous 737 MAX crashes.
2. Tesla (TSLA): The electric vehicle manufacturer’s stock is moving lower ahead of its upcoming deliveries report later this week.
3. Cryptocurrency-related stocks: Companies like MicroStrategy (MSTR), Coinbase Global (COIN), Riot Platforms (RIOT), and MARA Holdings (MARA) are trading lower as Bitcoin hovers below $94,000.
Upcoming Market Events
Investors should keep an eye on these upcoming economic indicators and events:
1. Pending Home Sales Index: The National Association of Realtors (NAR) is expected to release this data at 10:00 AM ET today, with analysts anticipating a 0.7% rise in November, lower than October’s 2% increase.
2. S&P Case-Shiller Home Price Index: This important housing market indicator will be released on Tuesday.
3. Construction Spending Data: Set to be released on Thursday, this will provide insights into the health of the construction sector.
4. Market Closure: The New York Stock Exchange and Nasdaq will be closed on Thursday, January 9, 2025, in observance of the National Day of Mourning for former President Jimmy Carter, who passed away on December 29, 2024, at the age of 100.
Looking Ahead: Market Expectations for 2025
As we move into 2025, analysts are cautiously optimistic about the market’s prospects:
1. Bitcoin Outlook: Some experts predict that Bitcoin could potentially reach $200,000 in 2025, buoyed by positive treatment from the incoming administration.
2. Economic Indicators: Investors will be closely watching housing and construction data in the coming days for insights into the broader economic health.
3. Corporate Earnings: With the Q4 2024 earnings season approaching, company performance reports will be crucial in shaping market sentiment for the early months of 2025.
In conclusion, while the stock market is experiencing a year-end dip, 2024 has been a remarkably strong year for equities. As we enter 2025, investors should stay informed about upcoming economic data releases, monitor key stocks like Boeing and Tesla, and keep an eye on broader market trends to make informed investment decisions.
