TSLA
Tesla
-- 379.280 NVDA
NVIDIA
-- 138.310 RGTI
Rigetti Computing
-- 20.0000 PLTR
Palantir
-- 75.190 AMD
Advanced Micro Devices
-- 120.630 
Markets Slide as Investors Lock In Year-End Gains
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U.S. equities faced broad declines in Monday’s session as investors engaged in year-end profit-taking. $Dow Jones Industrial Average (.DJI.US)$ fell 0.97%, $S&P 500 Index (.SPX.US)$ lost 1.07%, and the tech-heavy $Nasdaq Composite Index (.IXIC.US)$ dropped 1.21%. Despite the losses, all three indices are set to end the year with significant gains: $S&P 500 Index (.SPX.US)$ and $Dow Jones Industrial Average (.DJI.US)$ rose over 23% and 14%, respectively, while $Nasdaq Composite Index (.IXIC.US)$ posted a 30% gain, marking its best annual performance since 2021. The fourth quarter also concluded on a positive note, continuing the winning streak initiated earlier in the year.
Sector Highlights: Winners and Losers
Energy and utilities outperformed in Monday’s session, with $EQT Corp (EQT.US)$ and $Coterra Energy (CTRA.US)$ gaining 5.12% and 3.55%, respectively. On the other hand, technology and industrials faced notable headwinds. $Boeing (BA.US)$ stock dropped 2.26% following a tragic air crash in South Korea involving one of its aircraft. Meanwhile, $Walgreens Boots Alliance (WBA.US)$ saw a 3.74% decline, continuing its challenging trajectory in a turbulent retail pharmacy landscape.
Energy and utilities outperformed in Monday’s session, with $EQT Corp (EQT.US)$ and $Coterra Energy (CTRA.US)$ gaining 5.12% and 3.55%, respectively. On the other hand, technology and industrials faced notable headwinds. $Boeing (BA.US)$ stock dropped 2.26% following a tragic air crash in South Korea involving one of its aircraft. Meanwhile, $Walgreens Boots Alliance (WBA.US)$ saw a 3.74% decline, continuing its challenging trajectory in a turbulent retail pharmacy landscape.
Mixed Sentiments in Commodities and Oil Markets
Commodities presented a mixed picture as $Gold Futures(FEB5) (GCmain.US)$ dipped by 0.41% to $2,621.01 per troy ounce, reflecting lower demand for safe-haven assets amid ongoing market strength. Oil prices edged slightly higher, with $Crude Oil Futures(FEB5) (CLmain.US)$ rising by 0.84% to $71.19 per barrel. Despite this uptick, oil benchmarks remain on course for annual losses, primarily due to concerns over slowing global demand, particularly from China, the world’s largest oil importer.
Employment and Federal Reserve Outlook
Labor market data released earlier in December indicated mixed conditions, with initial claims stabilizing but continuing claims rising, signaling potential challenges in hiring. Meanwhile, projections for the Federal Reserve suggest an upcoming interest rate cut in March 2025, followed by additional reductions later in the year. The Fed is also expected to slow and eventually halt its balance sheet runoff in 2025, which may introduce further liquidity into the markets.
Commodities presented a mixed picture as $Gold Futures(FEB5) (GCmain.US)$ dipped by 0.41% to $2,621.01 per troy ounce, reflecting lower demand for safe-haven assets amid ongoing market strength. Oil prices edged slightly higher, with $Crude Oil Futures(FEB5) (CLmain.US)$ rising by 0.84% to $71.19 per barrel. Despite this uptick, oil benchmarks remain on course for annual losses, primarily due to concerns over slowing global demand, particularly from China, the world’s largest oil importer.
Employment and Federal Reserve Outlook
Labor market data released earlier in December indicated mixed conditions, with initial claims stabilizing but continuing claims rising, signaling potential challenges in hiring. Meanwhile, projections for the Federal Reserve suggest an upcoming interest rate cut in March 2025, followed by additional reductions later in the year. The Fed is also expected to slow and eventually halt its balance sheet runoff in 2025, which may introduce further liquidity into the markets.
Broader Trends and Key Takeaways
The year-end pullback underscores investor caution after an exceptionally strong year for equities. With economic uncertainties and geopolitical risks lingering, sectors like energy, utilities, and technology are likely to remain focal points in 2025. Investors are advised to closely monitor macroeconomic data, Federal Reserve policy adjustments, and global demand trends as key determinants of market trajectory in the upcoming year.
The year-end pullback underscores investor caution after an exceptionally strong year for equities. With economic uncertainties and geopolitical risks lingering, sectors like energy, utilities, and technology are likely to remain focal points in 2025. Investors are advised to closely monitor macroeconomic data, Federal Reserve policy adjustments, and global demand trends as key determinants of market trajectory in the upcoming year.
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