S&P 500 update/ Nasdaq falls post-holiday/ Treasury yields rise/ Big Tech stock declines/ 2024 stock market gains/ NEY YORK/ Newslooks/ J. Mansour/ Morning Edition/ U.S. stocks opened slightly lower Thursday after the Christmas holiday, with the S&P 500 down 0.2% and the Nasdaq falling 0.4%. Big Tech stocks, including Nvidia and Meta, weighed on the market. Treasury yields edged higher, and trading remained subdued with many global markets closed. Despite recent volatility, the S&P 500 is up 26% for 2024, nearing record highs.
Stock Market Update: Quick Looks
- Indices:
- S&P 500: Down 0.2%, breaking a three-day winning streak.
- Dow Jones: Fell 64 points (0.2%).
- Nasdaq Composite: Down 0.4%.
- Big Tech:
- Nvidia (-0.8%), Alphabet (-0.7%), Netflix (-0.9%), Meta (-1.1%) led declines.
- Bond Market:
- 10-year Treasury yield rose to 4.63% from 4.59%.
- Economic Data:
- Unemployment benefits steady, continuing claims reached a three-year high.
- Global Markets:
- Major markets in Europe, Hong Kong, Australia, and Indonesia remained closed.
Stocks Dip After Holiday Break as Tech Weighs on Market
Deep Look
Market Performance
U.S. markets opened lower as Wall Street resumed trading after the Christmas holiday. The S&P 500, coming off a three-day rally, fell 0.2%, while the Dow Jones dropped 64 points (0.2%) and the Nasdaq slid 0.4%. The declines were led by tech heavyweights, including Nvidia (-0.8%) and Meta Platforms (-1.1%).
Treasury yields rose modestly, with the 10-year yield ticking up to 4.63% from 4.59% on Tuesday, reflecting a slight shift in bond market sentiment.
Muted Trading Expected
With several global markets still closed, including in Europe and Asia-Pacific, trading volumes are expected to remain light through the end of the year. Historically, U.S. markets have seen an average year-end gain of 1.3% during the final five trading days of the year and the first two of the new year, according to historical data since 1950.
Broader Market Context
The S&P 500 has delivered strong returns in 2024, up approximately 26% year-to-date, buoyed by optimism following President-elect Donald Trump’s election victory. Hopes for economic growth and deregulation fueled investor sentiment early in the year. However, concerns about inflation, tariffs, and government debt have tempered some of the gains.
Despite these headwinds, the S&P 500 remains near its all-time high, set earlier this month, marking its 57th record close of the year.
Looking Ahead
While the remainder of the week features limited economic data, traders will watch for potential volatility as the year wraps up. Investors remain focused on the broader economic outlook and the potential policy shifts under the incoming administration.
You must Register or Login to post a comment.