U.S. Stocks End 2024 on a Downbeat Note Amid Economic Concerns – NewNooz

U.S. stocks experienced a downturn on Monday as 2024 approaches its end. The S&P 500 fell 0.8% during afternoon trading, with nearly 90% of its stocks losing value. Despite this, the index remains on track for its second consecutive year of over 20% gains.

• Broad Market Decline: The S&P 500, Dow Jones, and Nasdaq all fell on Monday, driven by significant losses in major tech stocks like Apple and Microsoft.
• Boeing Under Scrutiny: A fatal incident involving a 737-800 jet in South Korea caused Boeing shares to drop 1.8%, with further inspections adding to the company’s challenges.
• Mixed Economic Signals: While bond yields fell and energy stocks gained, tariff threats from incoming President Trump pose inflation risks for 2025.
• 2024 Market Recap: Despite the downturn, the S&P 500 is poised to close with over 20% gains for the second year, supported by strong economic growth and multiple Federal Reserve rate cuts.

The Dow Jones Industrial Average dropped 319 points, or 0.7%, while the Nasdaq composite slipped 0.8%. Major technology companies like Apple and Microsoft contributed significantly to the downturn. Apple’s stock fell by 1%, and Microsoft’s by 1.1%, impacting the broader market.

Boeing faced a challenging day, with its shares falling 1.8%. This decline followed an incident where one of its jets skidded off a runway in South Korea, resulting in a tragic loss of 179 lives. The incident has prompted South Korea to inspect all 737-800 aircraft operated by airlines in the country, adding pressure to Boeing’s woes.

Amid the market fluctuations, bond yields fell. The yield on the 10-year Treasury decreased to 4.56% from 4.63%. Energy stocks provided some relief, with crude oil prices rising 1.2% and the energy sector seeing modest gains.

The year 2024 was marked by economic growth fueled by strong consumer spending and a robust jobs market. Wall Street anticipates a 9% earnings growth for companies within the S&P 500. Inflation cooled throughout the year, nearing the Federal Reserve’s target, leading to three interest rate cuts.

However, inflation concerns persist as tariff threats loom from incoming President Donald Trump. Tariffs could increase costs for goods and raw materials, potentially passing expenses to consumers. The Federal Reserve has signaled caution as it enters 2025, wary of inflation risks.

As the year winds down, investors have limited corporate and economic news to digest. Markets will close on Wednesday for the New Year holiday. Upcoming reports on U.S. construction spending and manufacturing will offer insights into the economic outlook as 2025 begins.