Stocks set to end 2024 on a sour note despite strong gains for the year
Dec 30, 2024, 2:33 PM
Stocks are sliding Monday leading into the final trading day of 2024. (Brendan McDermid/Reuters/FILE via CNN Newsource)
(Brendan McDermid/Reuters/FILE via CNN Newsource)
New York (CNN) — US stocks dropped Monday, with the Dow falling by 418 points, or just under 1%, as markets close out a record year.
The S&P 500 ended the day down by just over 1%, while the tech-heavy Nasdaq saw the biggest slide, down 1.19%, as traders sold off Big Tech investments such as Amazon (AMZN), Alphabet (GOOG) and Tesla (TSLA).
Shares of Boeing (BA) also saw major declines Monday following the fatal Jeju Air crash, which prompted South Korea to order an inspection of all its 737-800 planes, the Boeing model that crashed. Boeing’s stock closed down over 2% for the day on the news.
Bitcoin’s massive late-year rally also continued to fizzle Monday. The cryptocurrency traded at $94,000 when US stock exchanges closed for the day at 4 p.m. ET. Bitcoin surged to $106,000 earlier this month on hopes that the upcoming administration will espouse more crypto-friendly policies.
In the commodities market, natural gas prices leapt by 20% Monday to a nearly two-year high as energy markets brace for a cold blast that could simultaneously spike demand and curb supply.
Year-end repositioning
The shortened trading week due to observance of the New Year, along with thin volume, can amplify market volatility, giving active buyers and sellers an outsized impact. Plus, end-of-year trading moves where traders generally try to pocket gains while often selling losing investments to offset them can help push stocks down.
But even prior to the holiday period, the Dow experienced its longest daily losing streak since 1974. The losses worsened after the Federal Reserve meeting earlier this month. While the central bank delivered a much-anticipated quarter-point rate cut, officials lowered their outlook for the number of rate cuts they expect to happen next year, resulting in a massive selloff.
Still, the Dow, S&P 500 and Nasdaq are all on track to book another year of gains.
Of the three, the Nasdaq is set to see the biggest gains of the year, up more than 32% as of Monday’s close.
Looking ahead to next week, the New York Stock Exchange and Nasdaq are set to close on Thursday, January 9, as part of a National Day of Mourning to honor former President Jimmy Carter, who will receive a state funeral in Washington, DC, that day.
