US equities extended their losses for a third consecutive session, with major indices weighed down by a weak performance in the technology sector. The S&P 500 and Nasdaq 100 both declined, reflecting investor caution as the year-end approaches.
Despite these setbacks, the S&P 500 has posted an annual gain of over 20%, primarily driven by the "Magnificent Seven" US tech giants. While concerns persist about the concentration of gains in a few names, strategists remain optimistic, with none of the 19 analysts tracked by Bloomberg predicting a decline in the S&P 500 for 2025.
Treasuries rallied, with the 10-year yield easing to 4.53%, following disappointing Chicago PMI data. On the housing front, pending home sales rose for the fourth straight month in November, reaching their highest levels since early 2023.
In commodities, oil prices edged higher, supported by risks anticipated for 2025, while US natural gas futures surged on colder weather forecasts. Gold is set to close the year on a strong note.
Looking ahead, markets anticipate key data releases this week, including China's manufacturing PMI on Tuesday and US construction spending figures on Thursday. Markets will close on 9 January to observe a national day of mourning for former President Jimmy Carter, who passed away at the age of 100.
As the holiday season impacts trading volumes, global markets remain cautious, with mixed performances across Asia and Europe, and investors eyeing 2025 with guarded optimism.
Bloomberg
