(Bloomberg) — A selloff in the world’s largest technology companies hit stocks in the final stretch of a stellar year.
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In another session of slim trading volume — which tends to amplify moves — the S&P 500 lost about 1% and the Nasdaq 100 slipped twice as much. All megacaps sold off, with Tesla Inc. and Nvidia Corp. down over 3%. That’s after a torrid surge that saw the top tech stocks dubbed “Magnificent Seven” accounting for more than half of the US equity benchmark’s performance in 2024.
“I think Santa has already come, but that’s me. Have you seen the performance this year?” said Kenny Polcari at SlateStone Wealth. “It’s Friday, next week is another holiday-shortened week, volumes will be light, moves will be exaggerated. Don’t make any major investing decisions this week.”
To Tom Essaye at The Sevens Report, sentiment is no longer euphoric and markets will start the year with regular investors much more balanced in their outlook — and that would be a “good thing as it reduces air pocket risk,” but advisors have largely ignored the volatility of the last few weeks.
“It’s fair to say that this recent dip in stocks has taken the euphoria out of individual investors, but it has not dented advisors’ sentiment,” he said. “And if we get bad political news or Fed officials pointing towards a “pause” in rate cuts, that likely will cause more short, sharp drops.”
Some of the main moves in markets:
Stocks
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The S&P 500 fell 1.2% as of 10:23 a.m. New York time
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The Nasdaq 100 fell 1.8%
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The Dow Jones Industrial Average fell 0.7%
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The Stoxx Europe 600 rose 0.4%
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The MSCI World Index fell 0.7%
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Bloomberg Magnificent 7 Total Return Index fell 2.6%
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The Russell 2000 Index fell 1.5%
Currencies
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The Bloomberg Dollar Spot Index was little changed
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The euro was little changed at $1.0421
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The British pound rose 0.3% to $1.2561
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The Japanese yen rose 0.1% to 157.78 per dollar
Cryptocurrencies
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Bitcoin fell 1% to $94,734.51
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Ether fell 0.2% to $3,325.7
Bonds
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The yield on 10-year Treasuries was little changed at 4.58%
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Germany’s 10-year yield advanced five basis points to 2.38%
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Britain’s 10-year yield advanced four basis points to 4.61%
Commodities
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West Texas Intermediate crude rose 0.8% to $70.17 a barrel
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Spot gold fell 0.6% to $2,617.35 an ounce
This story was produced with the assistance of Bloomberg Automation.
–With assistance from Robert Brand, Julien Ponthus and Chiranjivi Chakraborty.
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