On the last trading day of 2024, US benchmark stock indexes witnessed a decline after midday Tuesday, continuing a trend from the previous session. The Nasdaq Composite Index fell by 0.9% to close at 19,314. The S&P 500 Index saw a drop of 0.6%, settling at 5,874, while the Dow Jones Industrial Average decreased by 0.3%, ending the day at 42,428. Amid these fluctuations, energy and real estate sectors emerged as the top gainers, whereas the technology sector experienced the steepest declines during the trading session. The Case-Shiller National Home Price Index indicated a slight decline of 0.2% in October before seasonal adjustment, following a minimal 0.1% decrease observed in September.
Despite the decrease, national home prices increased by 3.6% year-over-year, showcasing a slower growth than the 3.9% registered in September. Month-over-month, home prices rose by 0.4% in October after seasonal adjustment. Analysts from Truist Securities commented, "Prices have declined sequentially somewhat for the past several months now, which is not out of the ordinary for typical seasonality in the back half of the year." They added that they believe home prices are reaching a peak in many previously hot markets, as increased supply coupled with buyer reactions to rising interest rates has been noted.
The analysts pointed to muted price growth in cities like Tampa and Dallas, while smaller markets within those states are under more pressure. Meanwhile, the Federal Housing Finance Agency’s home price measure showed a modest rise of 0.4% in October after an unrevised increase of 0.7% the previous month, aligning with expectations based on a Bloomberg survey.
Year-over-year, prices were up by 4.5% in October, with the West-South Central region experiencing the most significant gain, followed by the East-North Central region. In noteworthy company news, Amazon.com ($AMZN) faced a 0.6% decline in its stock price during recent trading as it contends with legal action alleging improper handling of employee 401(k) forfeitures.
This situation may constitute a breach of federal fiduciary duties under the Employee Retirement Income Security Act. The class action lawsuit seeks to represent over 20,000 members of the company’s 401(k) plan dating back to January 1, 2018, up to the date of the judgment. Affinity Bancshares ($AFBI) saw a dramatic drop of about 20% after the company, alongside Atlanta Postal Credit Union, announced the termination of their proposed merger.
This decision came following discussions with regulatory agencies regarding the merger’s compliance. Sangamo Therapeutics ($SGMO) plunged 55% in its stock price after announcing that it would regain full development and commercialization rights for giroctocogene fitelparvovec, following Pfizer’s (PFE) decision to terminate their collaboration and licensing agreement concerning the hemophilia A gene therapy. In positive news, Verastem ($VSTM) experienced a significant increase of 41% after the US Food and Drug Administration (FDA) accepted and granted priority review for its ovarian cancer drug application, setting an action date of June 30. On the fixed income side, the US 10-year Treasury yield increased by 3.4 basis points to 4.58%, while the two-year rate fell slightly to 4.25%.
The US Dollar Index rose 0.4%, reaching 108.53. In commodities, West Texas Intermediate crude oil prices surged by 1.1% to $71.79 per barrel. Meanwhile, gold prices increased by 0.8%, reaching $2,640 per ounce, while silver prices dipped by 0.5%, settling at $29.26 per ounce. Investors should note that the market will be closed on Wednesday, January 1st, in observance of New Year’s Day..