(Bloomberg) — US stocks declined as a powerful rally in technology shares faltered in the final trading sessions of 2024.
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The S&P 500 and Nasdaq 100 declined more than 1%, signaling further weakness on Wall Street after Friday’s retreat, which was marked by a pullback in tech megacaps. Treasuries gained, with 10-year yields dropping seven basis points to 4.55%. The Bloomberg Dollar Spot Index posted modest gains.
This year, the so-called Magnificent Seven cohort of US tech giants has driven a 25% advance in the S&P 500, while prompting some to worry that the gains are too concentrated in a small group of names. Still, few are calling for the rally to end and none of the 19 strategists tracked by Bloomberg expects the S&P 500 to decline next year.
“In these moments, it’s best to stay put,” said Nicolas Domont, a fund manager at Optigestion in Paris. “The US remains the place to be. Growth stocks continue to outperform and earnings forecasts are good, so there are good reasons to remain optimistic.”
Elsewhere, Europe’s Stoxx 600 index retreated, while Asian stocks snapped five days of gains. Trading volumes were thinner because of the holiday season.
“There’s a little bit of trepidation heading into year-end, owing in part to uncertainty over how the international trade picture may take shape in 2025,” said Tim Waterer, chief market analyst at Kohle Capital Markets Pty. “Some traders are taking risk off the table heading into year-end.”
Trading in Europe’s equity benchmark was about half of the 30-day average. It’s the final session of 2024 for some markets including Germany, where the DAX benchmark is on course for a 19% annual advance, beating peers in the UK and France.
Deadly Crash
Back in Asia, shares in Jeju Air fell 8.7% in Seoul to a record low after a Boeing Co. 737-800 aircraft operated by the carrier crashed on Sunday, causing the death of all but two of the 181 occupants. Boeing dropped as much as 5.1% in US premarket trading before paring its losses.
Investigators are focusing on a possible bird strike or landing-gear failure, and an analyst said it’s unlikely the events were related to Boeing’s production. Boeing said in a statement that it’s in contact with Jeju Air and ready to offer support.
Oil edged higher as traders focused on 2025 risks. Crude is heading for a loss this year, with trading confined to a narrow range since mid-October. Gold is set for one of its best years.
Jimmy Carter, the 39th president of the US, died Sunday at his home in Plains, Georgia. The US stock market has traditionally closed on the day of presidential funerals. No announcement has been made as of yet by exchange overseers.
