U.S. Stock Markets Close Lower despite Strong Annual Performance

U.S. stock markets experienced a significant downturn on the penultimate trading day of 2024

The Dow climbed off its worst levels after tumbling by more than 700 points in early trading but still ended the day down 418.48 points (1%) at 42,573.73. The tech-heavy Nasdaq also dove 235.25 points (1.2%) to 19,486.78 and the S&P 500 slumped 63.90 points (1.1%) to 5,906.94. The major averages still remain poised to post substantial gains for 2024, as the tech-heavy Nasdaq is up by nearly 30% for the year. Boeing (BA) slumped 2.3% which weighed on the Dow, after South Korea's Transport Ministry ordered an inspection of B737-800 aircraft after the deadly Jeju Air crash over the weekend.

Technology stocks ended the day lower. Semiconductor stocks were significantly weak, as reflected by the 1.9% loss posted by the Philadelphia Semiconductor Index. Gold stocks too were considerably weak, dragging the NYSE Arca Gold Bugs Index down by 1.8%. Pharmaceutical, healthcare and retail stocks were in line with gold stock, being weak and moving lower along with most of the other major sectors.

 

A report released by the National Association of Realtors showed pending home sales surged by much more than expected in the month of November. NAR said its pending home sales index shot up by 2.2% to 79.0 in November after jumping by 1.8% to 77.3 in October. Economists had expected pending home sales to climb by 0.7%. The pending home sales index increased for the fourth consecutive month, reaching its highest level since February 2023.

Asia-Pacific stocks moved mostly lower on Monday. Japan's Nikkei 225 Index slumped by 1.0% and South Korea's Kopsi dipped by 0.2%, although China's Shanghai Composite Index bucked the downtrend and inched up by 0.2%. The major European markets all moved to the downside on the day. While the French CAC 40 Index slid by 0.6%, the German DAX Index and the U.K.'s FTSE 100 Index both fell by 0.4%.

In the bond market, treasuries regained ground following the weakness seen last Friday. As a result, the yield on the benchmark ten-year note which moves opposite of its price, declined 7.4 bps to 4.54%.

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