Stock market update/ Wall Street news/ S&P 500 annual gains/ Boeing stock drop/ year-end market performance/ NEW YORK/ Newslooks/ J. Mansour/ Morning Edition/ Wall Street opened lower Monday as the S&P 500 fell 1.3%, with the Dow Jones and Nasdaq also declining. Despite the dip, the S&P 500 is on track for a second consecutive 20% annual gain. Boeing shares dropped following a South Korean plane crash that killed 179 people.
Stock Market Update: Quick Looks
- Market Performance: S&P 500 dropped 1.3%, Dow fell 1.2%, and Nasdaq declined 1.5%.
- Year-End Gains: S&P 500 still poised for a 25% annual rise.
- Boeing Plummets: Shares fell 3% after a South Korean plane crash.
- Global Markets: Asian and European markets showed mixed results.
- Economic Drivers: Strong consumer spending and easing inflation buoyed 2024’s gains.
Wall Street Declines in Final Days of a Strong 2024
Deep Look: Stock Market Declines in Final Days of a Strong 2024
Wall Street opened lower on Monday as the stock market began winding down a robust year. The S&P 500 fell 1.3%, the Dow Jones Industrial Average declined 1.2%, and the Nasdaq dropped 1.5%. While Monday’s dip reflected post-holiday sluggishness, the S&P 500 is still on track for a standout annual performance, with an expected gain of 25% for 2024.
A Strong Year for US Stocks
If current trends hold, the S&P 500 will post its second consecutive year of more than 20% gains, a feat last achieved in 1997-1998. The rally has been driven by strong consumer spending, a resilient labor market, and easing inflation. The Federal Reserve also cut interest rates three times this year, boosting investor confidence.
Boeing Shares Slide After South Korean Plane Crash
Boeing faced additional scrutiny after a Jeju Air Boeing 737-800 skidded off a runway in South Korea, killing 179 of the 181 people onboard. Early investigations suggested the plane’s landing gear failed to deploy. The disaster compounds a challenging year for Boeing, whose shares dropped 3% in premarket trading and have fallen more than 30% in 2024.
The crash is the latest setback for the aerospace giant, which has faced safety concerns, labor strikes, and financial struggles.
Global Markets Mixed
- Asia: Tokyo’s Nikkei 225 fell 1% on its final trading session of the year, closing at 39,894.54. The Hang Seng in Hong Kong dipped 0.2%, while Shanghai’s Composite Index rose 0.2%.
- Europe: Germany’s DAX edged down 0.1%, France’s CAC 40 gained 0.2%, and Britain’s FTSE 100 was flat.
The Nikkei’s drop came amid apologies from Japan Exchange Group CEO Hiromi Yamaji for a recent insider trading scandal. Yamaji pledged reforms to restore trust in the market.
Market Influencers
The year’s strong performance has been bolstered by steady economic data and a favorable shift in monetary policy. Inflation eased significantly in 2024, allowing the Federal Reserve to reverse course on interest rates. The central bank’s rate cuts have supported equity markets, keeping the economy on stable footing.
Energy and Currency Update
- Oil Prices: US benchmark crude oil rose 28 cents to $70.88 per barrel, while Brent crude increased by 20 cents to $73.99 per barrel.
- Currency Markets: The US dollar traded at 157.55 yen, and the euro strengthened to $1.0445.
Looking Ahead
As the stock market closes the year, investors will focus on 2025’s economic outlook, including the Federal Reserve’s next steps and ongoing geopolitical uncertainties. Despite Monday’s declines, 2024 will be remembered as a banner year for US stocks.
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