U.S. stocks ended lower on Tuesday, as the U.S. equity market failed to end 2024 on a high note.
The Dow Jones Industrial Average fell 29.51 points, or 0.07%, to 42,544.22. The S&P 500 sank 25.31 points, or 0.43%, to 5,881.63. The Nasdaq Composite Index shed 175.99 points, or 0.90%, to 19,310.79.
Six of the 11 primary S&P 500 sectors ended in green, with energy and real estate leading the gainers by adding 1.35% and 0.76%, respectively. Meanwhile, technology and consumer discretionary led the laggards by dropping 1.04% and 0.98%, respectively.
Large-cap technology stocks, which have been market leaders for much of the year, faced renewed pressure this week. Tesla led the selloff, dropping 3.25% on Tuesday and marking its fourth consecutive day of losses. The electric vehicle giant has shed 12% over the past four days as investors await its fourth-quarter deliveries report, set for release on Thursday. Other tech heavyweights also retreated, with Nvidia down 2.33% and declines also in Apple, Microsoft, Alphabet, Amazon, and Meta Platforms.
Meanwhile, the U.S. 10-year Treasury yield ticked up to 4.573%, reflecting ongoing investor expectations of higher interest rates. This slight increase from Monday’s 4.55% highlights the persistent influence of monetary policy concerns on market sentiment.
Despite recent losses, the major indexes have achieved substantial gains for the year, with multiple all-time highs recorded along the way. The S&P 500 has posted a remarkable performance in 2024, climbing over 23% and building on its impressive 24.2% gain from 2023. This two-year surge of approximately 53% marks the strongest back-to-back performance since 1997 and 1998.
The Dow Jones Industrial Average also delivered a solid year, rising nearly 13%, while the Nasdaq Composite emerged as the standout performer among the major indexes with a 29% gain this year.
“I think a lot of what drove that enthusiasm is you had good developments on all those fronts in 2024. You had inflation on a downward trajectory, the Fed coming out aggressively in September when they started cutting rates,” said Yung-Yu Ma, chief investment officer for BMO Wealth Management.
“And for a lot of the time you had a 10-year Treasury yield that was very well-behaved, along with earnings growth. So you got everything together at once that was going well,” Ma said.
The market is closed on Wednesday for New Year’s Day. A Citi Investment Strategy report this month advised investors to be prepared for more volatile markets as U.S. policy shows greater impact across the world in the coming year. (Xinhua)
