total-news-1024x279-1__1_-removebg-preview.png

SELECT LANGUAGE BELOW

Stock futures tick lower as S&P 500 closes out second year in a row with 20% gain: Live updates – CNBC

Traders work on the floor of the New York Stock Exchange.

Brendan McDiarmid | Reuters

Stock futures fell slightly ahead of the final session of 2024 as Wall Street had another strong year. S&P500 It was the second year in a row that rates rose more than 20% annually, helped by lower interest rates, economic strength and enthusiasm for artificial intelligence.

futures tied to Dow Jones Industrial Average `I lowered 0 points, but S&P500 futures It fell by 0.1%. Nasdaq 100 futures It fell nearly 0.2%.

The S&P rose more than 23.8%, maintaining a steady pace of increase of more than 20% for the second consecutive year. of Dow Jones Industrial Average increased by nearly 13%; Nasdaq Composite This was an increase of 29.8%.

The narrative around AI and its potential productivity gains has driven big gains in major stock averages throughout the year, pushing the “Magnificent Seven” stocks, including AI chip darling Nvidia and iPhone giant Apple, to new highs. I pushed it up. Advances in mega-cap technology have also pushed major average stock prices to record levels.

Stocks also benefited as the Federal Reserve began cutting interest rates following one of the most aggressive rate hike cycles in recent history, raising expectations for a period of economic growth as borrowing costs eased. brought. The central bank has cut interest rates by 100 basis points since September. Further rate cuts are expected in the new year, but the Fed's pace may be slower than initially expected.

President-elect Donald Trump's successful re-election campaign in November also provided a tailwind for the market, raising expectations for deregulation, lower corporate tax rates and a focus on the US economy remaining resilient. Hopes for a crypto-friendly administration helped push Bitcoin to a record high of over $108,000. Tesla was another big winner in the election due to CEO Elon Musk's close relationship with President Trump.

The Nasdaq and S&P rose 7.1% and 2.5%, respectively, this quarter, with both companies posting five consecutive quarters of positive growth for the first time since 2021. The Dow rose just 0.6% from the same period, marking its fourth positive gain. 4/5.

Despite a strong year-to-date performance, Wall Street is ending the year on a tough note, with the market losing some of its momentum in recent trading. Stocks have been weak in December as investors booked profits in some of 2024's biggest winners and concerns about rising interest rates grow as the year ends. The Dow Jones Industrial Average fell 5.2%, its worst month since September 2022. The Nasdaq rose 1.4% and the S&P fell 2.1%, heading for its worst month since April.

“If you think about it, it kind of makes sense,” Bespoke Investment Group co-founder Paul Hickey said Monday on CNBC's “Closing Bell: Overtime.” “There's going to be some uncertainty as we end the year with the market significantly higher and we have a new administration. You can't blame investors for hitting the registers a little bit here.”

The drop in momentum also dashed investors' hopes for a Santa Claus rally, which occurs when the market rises during the last five business days of the calendar year and the first two business days of January. Instead, the S&P 500 has fallen at least 1% in each of the past two trading days.

The Dow Jones Industrial Average ended Monday's volatile trading session down more than 418 points, or 0.97%. The S&P fell 1.07% and the Nasdaq fell 1.19%.

The market is closed on Wednesday for New Year's Day.

Facebook
Twitter
LinkedIn
Reddit
Telegram
WhatsApp