On the final trading day of the year, US benchmark equity indexes showed a dip intraday but were still poised to achieve remarkable double-digit gains for the year 2024. The Nasdaq Composite index declined by 0.8% to reach 19,330.2 by midday on Tuesday, while the S&P 500 recorded a 0.5% drop, landing at 5,875.8.
Meanwhile, the Dow Jones Industrial Average fell 0.3% to 42,422.8. To date, the Nasdaq has impressively risen by 29% this year, followed by the S&P 500 with a 23% increase and the Dow showing a respectable gain of 13%. Investor sentiment entering 2025 appears optimistic, fueled by trends that remained intact after the November US presidential election results.
Notably, pro-growth policy expectations were ignited by these outcomes, positioning the landscape for potential equity price increases, contingent upon the US economy sustaining growth above 2% and corporate earnings exceeding 10%, as indicated in a note from D.A. Davidson to its clients. With markets scheduled to close on Wednesday due to New Year's Day, sector performance exhibited a mixed bag.
The technology sector faced the steepest decline of 1% on Tuesday, contrasting sharply with the energy sector, which led the gainers for the day. In bond markets, the US 10-year yield increased by four basis points to 4.59%, demonstrating market reactions to broader economic indicators. The two-year interest rate showed little change, remaining steady at 4.25%. Turning to the housing market, fresh data revealed that US home prices had surged to record highs in October, though year-over-year price growth showed signs of slowing.
The S&P Global division, S&P Dow Jones Indices, commented on the situation, with Brian Luke, head of commodities and digital assets at the Index, noting, "With the latest data covering the period prior to the presidential election, our national index has shown continued improvement. Removing the political uncertainty risk has led to an equity market rally; it will be telling should similar sentiment occur among homeowners." Furthermore, Texas' services sector demonstrated robust activity growth in December, according to the Federal Reserve Bank of Dallas.
Looking ahead, the housing industry is anticipated to begin 2025 amid the same challenges encountered this year, including volatility in mortgage rates and seasonal trade underperformance, as highlighted by Wedbush Securities in their client correspondence. In terms of commodity markets, West Texas Intermediate crude oil experienced a 1.2% increase, reaching $71.82 a barrel. In corporate developments, Sangamo Therapeutics faced a significant downturn, with shares plummeting by 55%.
This dramatic decline followed the announcement from their partner, Pfizer, which decided against the continuation of a novel gene therapy aimed at treating hemophilia A. On a more positive note, Pfizer shares recorded a slight increase of 0.2% intraday on Tuesday. Moreover, Grail's shares fell by 5%, marking the steepest decline on the Nasdaq.
On the other hand, the biotech giant Moderna emerged as the best performer on the S&P 500, escalating by 4.1%. In a positive turn for e-commerce, Chinese platform PDD saw its US-listed shares rise by 3.3%, marking the highest gain on the Nasdaq for the day. As for precious metals, gold prices increased by 0.8%, now standing at $2,639.20 per troy ounce, whereas silver saw a slight decrease of 0.6%, pricing at $29.25 per ounce.
The financial markets continue to exhibit fluctuations driven by economic forecasts, investor confidence, and sector performance as we close out the year..