In a notable shift, US benchmark stock indexes experienced a retreat along with government bond yields after midday during the penultimate trading session of 2024. The Nasdaq Composite Index slipped 0.9%, settling at 19,594.4. Simultaneously, the S&P 500 saw a decrease of 0.7%, marking a closing value of 5,930.7, while the Dow Jones Industrial Average fell by 0.8% to 42,638.4. Within the depths of the market, the materials and consumer discretionary sectors led the decliners, contrasting with the energy sector, which emerged as the sole gainer of the day. Despite the downturn in stock prices, pending home sales indicated a positive trend, rising by 2.2% in November.
This figure exceeded the anticipated 0.8% increase predicted by a Bloomberg survey, building on a preceding 1.8% rise in October. According to the National Association of Realtors, the monthly sales index is up 6.9% from the same time last year and currently sits at 79.0, the highest level observed since February of the previous year. Commentary from the Institute for Supply Management revealed a concerning dip in the Chicago Purchasing Managers' Index (PMI), which fell to 36.9 in December from 40.2 in November.
Analysts had expected a more moderate decline to an index reading of 42.7, which signals contraction within the manufacturing sector. From an investment standpoint, Wells Fargo Investment Institute released its latest investment strategy report on Monday, predicting that US stocks are poised to conclude 2024 with strongly positive gains.
The report suggests that while volatility experienced in December has tempered some investor enthusiasm, it has not significantly impacted the substantial gains that stocks have made throughout the year as of December 19. In the realm of company-specific news, Boeing Co. ($BA) saw its shares decline by 1.6% during recent Monday trading.
The downturn followed reports from various media outlets stating that South Korea's transport ministry would inspect all Boeing planes operated by airlines within the country after the tragic crash of a Jeju Air Boeing 737-800 at Muan International Airport, which resulted in the loss of 179 lives. Meanwhile, Nvidia Corp.
($NVDA) took a positive step in its growth strategy by completing its acquisition of Run:ai, an AI software company, as confirmed in a blog post shared by Run:ai. Following this announcement, Nvidia's shares climbed 1.9% around midday, reflecting market confidence in this strategic move. Analyzing the bond market, the US 10-year Treasury yield dropped six basis points to 4.56%, while the two-year rate slid six basis points to 4.27%.
In foreign exchange, the US Dollar Index appreciated by 0.2%, reaching 108.22. On the commodities front, West Texas Intermediate crude experienced a rise of 1.3%, with prices settling at $71.50 per barrel. Gold saw a decline of 0.6%, priced at $2,615.70 per ounce, while silver fell by 1.9% to $29.39 per ounce. In a notable announcement, both the New York Stock Exchange and Nasdaq have stated that they will cease trading on January 9 in observance of the National Day of Mourning.
This closure is to honor former President Jimmy Carter's passing, while the Securities Industry and Financial Markets Association has recommended an early market close at 2 PM ET on that day for bond market trading. Investors should prepare accordingly as market dynamics continue to evolve leading into 2024..