The DOW JONES fell 0.99% or 427 points to 42,564 points, while the S&P 500 lost 1.10% to 5,905 points. The Nasdaq fell 1.31%, to 19,464 points.
The major New York indices are coming off a downward session last Friday, with the Dow Jones losing 0.77%, the S&P 500 falling 1.11% and the technology Nasdaq falling 1.49%. Despite this corrective, they managed to save the week as a whole in a positive way: the S&P 500 accumulated a rise of 0.67%, the Nasdaq showed a rise of 0.76%, and the DOW JONES advanced 0.35%.
The S&P 500 and Dow are up more than 25% and 14%, respectively, so far in 2024 and are on track for their best year since 2021although they are very far from the historical highs of just a few weeks ago. The Nasdaq has gained more than 31%.
Benchmarks are also headed for a positive fourth quarter, with the Nasdaq on track for its longest quarterly winning streak since the second quarter of 2021.
Investors had hoped for an additional boost in the traditional Santa Claus rally, which typically occurs in the last five trading days of the year and the first two of the following January, but there have been some concerns lately that the market may be losing steam. , with some year-end profit taking.
“I think it’s about time,” believes Tavis McCourt, institutional equity strategist at Raymond James. “I would expect more as we get into January. “We have had a tremendous amount of momentum in a narrow subset of names over the past month,” he adds in statements to CNBC.
This week marks the beginning of a period of slack in economic data, considering that on Wednesday the market will be closed for the New Year. However, this Monday investors will know the Chicago PMI data and pending home sales.
In the business sector, Boeing shares fell 3.4% at the opening of the session. South Korea has ordered an emergency safety inspection of its entire airline operating system after the country’s worst air disaster over the weekend, which involved a plane from the American manufacturer. The causes of the accident, which caused the death of 179 of the 181 people who were on board the device, are still unclear.
Today the market also does not have the help of stocks growththe main culprits of the year’s increases. Tesla fell 2.5% in the New York morning, while NVIDIA fell 1.9% and Broadcom fell 3%.
Palantir Technologies, the company with best performance in the S&P 500 this yearfalls 2.9% at the opening. The technology company has seen a 361% increase in the year, and only 18% this month alone after it extended an army contract for up to $619 million in early December.
V2X does rise, which registered 4.2% at the opening after announcing a $170 million contract with the DEA. Through the agreement, V2X will continue to support the US anti-drug agency’s aircraft fleet.
Microstrategy registered drops of around 3.5% after having sold more than 592,000 shares, raising around 209 million dollars. With the money from the operation, the purchase of more than 2,100 bitcoins was financed.
One aspect that is weighing on investor sentiment in recent weeks is the pressure on bond yields, once Donald Trump’s return to the White House could lead to more inflationary economic policies. According to CME Group’s Fedwatch tool, the market no longer expects a new rate cut until the Fed meeting in May.
Thus, US ten-year bond yield is at its highest since Mayalthough today it relaxes slightly to 4.557%. The two-year bond pays 4.269%.
In raw materials markets, oil prices continue to rise after last week’s increases, when West Texas and Brent registered increases of 1.6% due to the reduction in US inventories and the prospects of a stimulus in China to revitalize demand.
West Texas futures rose 0.89% today to $71.23 per barrel, while the benchmark Brent in Europe is paid at $74.24, with an increase of 0.65%.
The euro falls again and drops 0.19% against the dollar to a cross of 1.0405 dollars for each single currency, although it is still close to recent lows. The community currency is headed for an annual fall of 5.5% against the greenback.