In a notable shift during the penultimate trading session of 2024, benchmark stock indexes in the United States experienced a retreat alongside government bond yields. The Nasdaq posted a decline of 0.7%, settling at 19,585.1, with the S&P 500 mirroring the downturn, also falling 0.7% to 5,931.15. The Dow Jones Industrial Average followed suit, decreasing 0.7% to close at 42,708.7.
Among the sectors, consumer discretionary and materials led the decliners, whereas the energy sector emerged as the sole intraday gainer. The New York Stock Exchange and the Nasdaq announced a trading closure on January 9 to honor the passing of former President Jimmy Carter. In conjunction, the Securities Industry and Financial Markets Association has recommended an early market close for bond trading on that day to respect this national observance. In a Monday note from Wells Fargo Investment Institute, analysts expressed that "US stocks are poised to end 2024 with strongly positive gains." This perspective primarily stems from the supportive environment created by the Federal Reserve's interest rate cuts initiated back in September, coupled with the upcoming US presidential election, robust company earnings, and significant advancements in artificial intelligence. Despite the volatility witnessed in December, which somewhat tempered investor enthusiasm, the report notes that as of December 19, these fluctuations have not demonstrably derailed the significant stock gains accumulated throughout the year. On the economic front, pending home sales in the United States exceeded expectations last month, achieving the highest level since February 2023, as reported by the National Association of Realtors. In corporate developments, Boeing’s ($BA) shares declined by 2% during afternoon trading, following multiple media reports indicating that South Korea’s transport ministry plans to inspect Boeing aircraft operated by local airlines.
This decision comes in light of recent safety concerns following a crash involving one of the manufacturer’s 737-800 planes. Meanwhile, Nvidia ($NVDA) successfully completed its acquisition of the AI software firm Run:ai, as announced in a blog post from Run:ai on Monday. Following this news, Nvidia's stock saw a 1.5% increase around midday, reflecting positive market sentiment toward the acquisition. On the treasury side, the US 10-year Treasury yield experienced a decrease of seven basis points, settling at 4.55%.
Concurrently, the two-year Treasury rate also fell by seven basis points to 4.25%. In commodity markets, West Texas Intermediate crude oil advanced by 0.7% to $71.10 per barrel, while gold prices dipped 0.6%, positioning at $2,617.50 per troy ounce. Silver prices saw a more significant reduction, falling 1.8% to $29.42 per ounce. As the strategies unfold, it remains clear that the economic landscape and its fluctuations will play a significant role in shaping investor sentiment in the coming days..