In recent trading activity, US benchmark equity indexes experienced a downturn on Friday due to notable declines in several mega-cap stocks. The Nasdaq Composite saw a significant drop of 1.5%, closing at 19,722, while the S&P 500 lost 1.1%, finishing at 5,970.8. The Dow Jones Industrial Average followed suit with a decline of 0.8%, settling at 42,992.2.
Among various sectors, consumer discretionary experienced the most considerable slump, with energy remaining relatively unchanged. Notably, no sector was able to post gains during this trading session. The chip-making giant Nvidia ($NVDA) faced a 2.1% drop, marking the steepest decline on the Dow for the day.
In the tech space, major players Microsoft ($MSFT) and Apple ($AAPL) ranked among the worst performers on the Dow, alongside the e-commerce giant Amazon.com ($AMZN). Shares of Alphabet, which includes both Class A and C stocks (GOOG, GOOGL), each dipped roughly 1.5%. Meta Platforms (META) also experienced a decrease of 0.6%.
Significant movement was seen in electric vehicle manufacturer Tesla ($TSLA), which recorded the most considerable fall on the Nasdaq and the second-highest drop on the S&P 500, plummeting by 5%. Retailing behemoth Walmart ($WMT) similarly closed lower, continuing the negative trend. Despite these declines, the year-to-date performance remains positive for the Nasdaq, having climbed 31%, the S&P 500 with a rise of 25%, and the Dow up 14%.
Looking ahead, the upcoming Tuesday marks the last trading day of the year. Investor sentiment entering 2025 remains optimistic, with D.A. Davidson noting that several positive trends from 2024 have been reinforced by the results of the November US presidential election, fostering expectations for pro-growth policies.
This optimism sets the stage for potential equity price increases if the US economy manages to sustain growth above 2% alongside corporate earnings growth surpassing 10%. In other financial news, the yield on the US 10-year treasury rose by five basis points, now at 4.63%. The two-year rate maintained stability at 4.33%. In corporate developments, Lamb Weston ($LW) has seen its shareholder Jana Partners nominate Jeff Delapp as part of a potential restructuring of its board.
Following the announcement, Lamb Weston shares rose by 2.6%, making it the standout performer on the S&P 500. Concerns regarding competition have led to UnitedHealth Group ($UNH) and Amedisys ($AMED) agreeing to extend the proposal deadline for their merger deal, which is under scrutiny from the US Department of Justice.
As a result, shares of Amedisys surged by 4.7%, whereas UnitedHealth saw a minor decline of 0.2%. On the commodities front, West Texas Intermediate crude oil experienced a gain of 0.9%, reflecting a price of $70.27 per barrel on Friday. Furthermore, government data indicates that commercial crude stockpiles in the US fell more than expected last week.
The number of oil rigs across the nation remained consistent at 483, as reported by energy services firm Baker Hughes (BKR). In precious metals, gold saw a decrease of 0.8%, trading at $2,632.60 per troy ounce, while silver dropped 1.5%, settling at $29.95 per ounce. The trading landscape remains dynamic, reflecting varied economic signals and investor behaviors..