4:15pm: A year of bullish gains
US stocks closed lower on the final trading day of 2024, capping off a remarkable year for Wall Street despite a subdued December performance.
The Dow Jones ended the session at 42,544, down 30 points or 0.1%. The S&P 500 fell 25 points or 0.4% to close at 5,882, while the tech-heavy Nasdaq Composite declined 176 points or 0.9% to finish at 19,318.
Despite the year-end dip, 2024 proved to be an exceptional year for U.S. equities. The S&P 500 surged approximately 24% over the course of the year, marking its second consecutive annual gain above 20%. The Nasdaq outperformed with a nearly 30% increase, while the Dow Jones posted a solid 13% gain for the year.
The strong performance was driven by several factors, including receding inflation, which approached the Federal Reserve's 2% target, raising hopes for potential interest rate cuts in the coming year. Additionally, a resilient economy, robust consumer spending, and a strong job market contributed to the bullish sentiment throughout most of 2024.
However, the final month of the year saw some profit-taking and a loss of momentum, with investors cashing in on some of the year's top performers. Factors such as tax positioning, elevated stock valuations, increased treasury yields, and geopolitical uncertainties weighed on investor confidence in the closing weeks of 2024.
12:10pm: Markets slip
Markets are experiencing a relatively quiet close to 2024, with the major indexes posting slight declines at midday as investors wrap up a notable year.
The Dow Jones is down 0.2%, trading at 42,506, while the S&P 500 also slipped 0.2% to 5,893. Meanwhile, the Nasdaq has dropped 0.4% to 19,416.
11:10am: S&P 500 poised for strong finish
The S&P 500 is on track to close the year with an impressive gain of about 24%, marking its second consecutive year of returns exceeding 20%. The robust performance highlights the resilience of the US economy and sustained optimism over corporate earnings.
Leading the charge among major indices, the Nasdaq has surged nearly 30% this year, fueled by fervent investor interest in artificial intelligence and a stellar run by major technology companies. The tech-heavy index’s remarkable gains underscore the sector’s central role in driving market momentum.
The Dow Jones Industrial Average, while lagging its peers, has notched a solid annual gain of approximately 13%. The blue-chip index’s performance reflects broader economic strength beyond the tech sector, capturing gains across various industries.
10:00am: Final trading day of 2024 underway
The major indices are showing modest gains in early trading, capping off a remarkable year of growth and record-breaking performances.
The Dow Jones Industrial Average is up 0.4% or 180 points, reaching 42,753. The S&P 500 has climbed 0.3% or 17 points to 5,924, while the tech-heavy Nasdaq Composite has added 0.2% or 34 points, touching 19,521.
These gains come despite a slight dip in momentum during the final days of December, as investors took profits and reassessed their positions.
7:05am: Positive start
Wall Street appeared in positive spirits as the final day of trading in 2024 loomed.
Futures had the Nasdaq gaining 0.4% ahead of Tuesday’s opening bell, while the S&P 500 and Dow Jones were seen 0.3% and 0.2% higher respectively.
Declines across the board on Monday had hampered any last-ditch hopes for a Santa Rally this year as investors appeared to embark on last-minute profit-taking after what has otherwise been a strong year for stocks.
Come Monday, the Nasdaq had racked up a 32% gain since the start of 2024, with the S&P 500 having gained 25% and the Dow Jones up 13% in the meantime.
Swissquote Bank analyst Ipek Ozkardeskaya noted an ongoing rally among big technology firms had largely contributed to the stellar year for US equities.
“[It’s] normal to start thinking that the AI rally will - one day - fizzle out, or at least we will see a sizeable correction given that the valuations went too high, and the expectations today have become very difficult to satisfy,” Ozkardeskaya said.
“But still, all those who called for a correction have so far happened to be wrong, and Wall Street analysts spent the year raising their price targets.
“The consensus is that 2025 should be a good year, that the easing central bank policies and falling yields should help the US big tech rally to further broaden toward the non-tech pockets of the market.”