US Stocks Trim Losses as Treasuries Gain Ground in Market Wrap
US stocks are experiencing a rough end to the year, with tech shares dragging down the market while Treasuries see a rally amid mixed economic signals
US, Stocks, Treasuries, Technology, Market, Economy
New York: So, it’s been a bit of a rollercoaster for US stocks lately. They were having a great year, but now, things are looking a bit shaky. The tech sector, which has been a big driver of growth, is taking a hit. This all started when the Federal Reserve hinted that interest rate cuts might not be coming anytime soon.
The S&P 500 managed to recover some losses after dropping as much as 1.7%. Big names like Apple, Tesla, and Microsoft are weighing heavily on the index. Meanwhile, the Nasdaq 100 dipped by 0.8%.
On the flip side, Treasuries are seeing a bit of a boost, with the 10-year yield around 4.55%. This came after some unexpected data showed a decline in the Chicago Purchasing Managers’ Index. Plus, pending home sales in the US have been on the rise for four straight months, hitting their highest point since early 2023. The dollar is also climbing, reaching levels not seen since last November.
This year, the so-called Magnificent Seven tech giants have pushed the S&P 500 up by 25%. But some folks are worried that this growth is too concentrated among just a few companies. Still, most analysts aren’t predicting a downturn for next year.
Nicolas Domont, a fund manager in Paris, suggests that now might be a good time to hold steady. He believes the US market is still the place to be, with growth stocks continuing to shine and positive earnings forecasts keeping spirits high.
Across the pond, Europe’s Stoxx 600 index is down, and Asian stocks have snapped a five-day winning streak. Trading is a bit quieter, likely due to the holiday season.
As we approach the end of the year, there’s a bit of nervousness in the air. Tim Waterer, a market analyst, mentioned that traders are being cautious, especially with uncertainties around international trade in 2025.
In other news, a tragic plane crash in Asia has caused Jeju Air shares to plummet to a record low. A Boeing 737-800 operated by the airline crashed, resulting in the loss of nearly all passengers on board. Boeing’s stock also took a hit in US trading.
Oil prices are inching up as traders keep an eye on potential risks for 2025. Crude oil is on track for a loss this year, while gold is set to have one of its best years yet.
In a somber note, former President Jimmy Carter passed away at his home in Georgia. The stock market traditionally closes on the day of a presidential funeral, so expect the NYSE and other exchanges to shut down on January 9 in his honor.
Looking ahead, there are some key events coming up this week, including China’s manufacturing PMI and US construction spending data.
So, that’s the latest on the markets. It’s a mixed bag, but there’s still some optimism out there!