Stock Market Today: Market Trends, Upcoming Events, and Major News on December 17, 2024
As of Tuesday, December 17, 2024, the stock market continues to show mixed performance, with technology stocks leading the way while other sectors face challenges. This article provides a comprehensive overview of current market indexes, upcoming events, and significant stock news that investors should be aware of.
Current Market Performance
The major U.S. stock indexes are showing divergent trends:
1. Nasdaq Composite: The tech-heavy index hit a new record high, rising 1.24% in the previous session. It continues to benefit from strong performances in the technology and consumer discretionary sectors.
2. S&P 500: The broader market index gained 0.38%, with its tech and consumer discretionary sectors also reaching record levels.
3. Dow Jones Industrial Average: In contrast to its counterparts, the Dow fell 0.25%, marking its eighth consecutive day of losses – the longest losing streak since 2018.
Key Stock Movements
Several notable stocks are making headlines:
1. Nvidia (NVDA): The chipmaker has entered correction territory, falling about 11% from its recent closing high of $148.88. Despite this setback, Nvidia remains up 166% year-to-date.
2. Broadcom (AVGO): The semiconductor company hit a new high, gaining approximately 11% and surpassing a market capitalization of $1 trillion. This surge comes on the heels of increased price targets from Wall Street analysts.
3. Apple (AAPL), Alphabet (GOOGL), and Tesla (TSLA): These tech giants contributed to the Nasdaq’s strong performance, with Tesla reaching a new record high.
Upcoming Market Events
Investors should keep an eye on these critical events:
1. Federal Reserve Decision: The Fed’s final two-day policy meeting of 2024 concludes on Wednesday. Market expectations are high for a quarter-point rate cut, with 93% of respondents in a CNBC Fed Survey anticipating this move.
2. Future Rate Cut Projections: Analysts now expect only two more quarter-point cuts in 2025, down from previous estimates of three. This would bring the funds rate to 3.8% by December 2025 and 3.4% by the end of 2026.
3. Economic Data Releases: Upcoming reports on retail sales, manufacturing, and revised GDP figures for the second quarter will provide further insights into the economy’s health.
Major Stock News
1. TikTok Legal Battle: The popular social media app has appealed to the Supreme Court to block a law that could effectively ban it in the U.S. The legislation requires TikTok’s Chinese owner ByteDance to sell the app by January 19, 2025, or face removal from U.S. app stores.
2. Walmart (WMT) Security Measures: The retail giant is implementing new security protocols, including providing body cameras to some employees, in response to rising concerns about retail theft.
3. AI Market Expansion: While Nvidia has been the poster child for AI-related stocks, investors are beginning to recognize other beneficiaries in the AI space, potentially leading to a broader market rally in this sector.
Market Outlook
As we approach the end of 2024, the stock market continues to navigate a complex landscape of economic indicators, corporate earnings, and geopolitical events. The technology sector remains a driving force, but investors should be cautious of potential corrections in overheated stocks.
The Federal Reserve’s decision on interest rates will be crucial in shaping market sentiment for the coming months. While a rate cut is widely expected, the Fed’s commentary on future economic projections will be closely scrutinized for hints about the pace of monetary easing in 2025.
Investors should also keep an eye on upcoming economic data releases, as they may influence market direction and sector rotation. The ongoing legal challenges faced by companies like TikTok highlight the importance of regulatory risks in the current market environment.
As always, maintaining a diversified portfolio and staying informed about market trends will be key to navigating the dynamic stock market landscape in the final weeks of 2024 and beyond.
