US benchmark equities ended lower in the penultimate trading session of 2024, with the Nasdaq falling 1.2% to 19,486.8, the S&P 500 losing 1.1% to 5,906.94, and the Dow Jones Industrial Average dipping nearly 1% to 42,573.73. Consumer discretionary, materials, and health sectors led the decliners. The New York Stock Exchange and Nasdaq will close trading on January 9 to observe the passing of former President Jimmy Carter, while the Securities Industry and Financial Markets Association (SIFMA) recommends an early market close for bond trading that day.
Economic data was mixed; pending home sales increased by 2.2% in November, outpacing the Bloomberg survey estimate of a 0.8% gain and following a 1.8% rise in October, according to the National Association of Realtors. Conversely, the Institute for Supply Management's Chicago PMI reading fell to 36.9 in December from 40.2 in November, below the expected 42.7.
In corporate developments, ByteDance, the owner of TikTok, plans to invest up to $7 billion in Nvidia's advanced AI chips outside China in 2025. Additionally, Nvidia completed its acquisition of AI software company Run:ai, indicating growth in the artificial intelligence sector. Nvidia shares rose 0.4% at market close.
However, Boeing shares fell 2.3% after reports surfaced about South Korea's transport ministry inspecting Boeing planes in the country following a recent crash involving one of its 737-800 aircraft. The US 10-year Treasury yield decreased by eight basis points to 4.54%, and the two-year rate slid by seven basis points to 4.25%.
In the commodity market, West Texas Intermediate crude rose by 0.8% to $71.14 per barrel..