Stocks exhibited an initial lack of direction during Tuesday’s session but ultimately trended mostly downward as the day progressed. The technology-focused Nasdaq significantly led this decline, closing at its lowest point in a month.
The Nasdaq fell by 175.99 points, or 0.9%, to close at 19,310.79, while the S&P 500 dropped 25.31 points, or 0.4%, ending at 5,881.63. The Dow Jones Industrial Average experienced a minor reduction, shedding 29.51 points, or 0.1%, to settle at 42,544.22.
This decline continued the notable retreat observed over the previous two trading sessions, as some investors opted to lock in profits from this year's substantial market gains.
Despite this recent downturn, the major indices have still recorded remarkable gains for 2024. The Nasdaq has surged nearly 30% for the year, demonstrating its robust performance. Similarly, the Dow climbed nearly 13%, while the S&P 500 saw its second consecutive annual gain over 20%, rising by more than 23%.
Semiconductor and software stocks were among the poorest performers, contributing significantly to the Nasdaq's decline. In contrast, oil producers saw an uptick, aligned with rising crude oil prices.
The continued retreat on Wall Street may indicate apprehensions about the market's prospects in the coming year, particularly after recent instability. Stock prices have been volatile over recent weeks following the Federal Reserve's projection for fewer interest rate cuts in 2025 earlier this month.
Trading volume remained somewhat restrained, as some market participants were eager to commence their New Year's Eve festivities ahead of time.
**Global Markets**
In the Asia-Pacific region, stock markets mostly declined on Tuesday. Notably, Japan and South Korea's markets were closed. China's Shanghai Composite Index dropped by 1.6%, and Australia's S&P/ASX 200 Index decreased by 0.9%.
Conversely, most European markets experienced gains, although several significant markets were not open. The French CAC 40 Index increased by 0.9%, while the U.K.'s FTSE 100 Index improved by 0.6%.
In the bond markets, U.S. Treasuries demonstrated slight weakness following their notable rebound in the previous session. As a result, the yield on the benchmark ten-year note, which inversely relates to its price, rose by 2.8 basis points to 4.573%.
**Looking Forward**
Upon returning from the New Year’s Day holiday on Wednesday, trading on Thursday may be influenced by reactions to a report on weekly jobless claims.
The material has been provided by InstaForex Company -
www.instaforex.com
