US stocks slump as 2024 nears the end; DJIA drops over 500 points

Investing.com -- US stocks slipped significantly lower Monday, weighed by profit-taking as a largely positive 2024 draws to a close. 

By 09:35 ET (14:35 GMT), the Dow Jones Industrial Average was down 505 points, or 1.2%, the S&P 500 index traded 71 points, or 1.2%, lower and the NASDAQ Composite dropped 280 points, or 1.4%.

Yet, despite these losses, the major averages are set to close 2024 near record levels, with the S&P 500 and DJIA up more than 23% and 14%, respectively, and on track for the best year since 2021. The Nasdaq has gained around 30%.

The benchmarks are also headed for a winning fourth quarter, in the wake of Donald Trump’s election win, with the Nasdaq on pace for its longest quarterly winning streak since the second quarter of 2021. Fed to cut in March - Goldman

The economic data slate Monday includes pending home sales for November as well as the December Chicago PMI , but activity is likely to be limited with the market closed on Wednesday.  

Later in the week, investors will scrutinize the Institute of Supply Management's manufacturing activity survey for December and a weekly report on jobless claims , ahead of a key employment report due in the following week.

Goldman Sachs predicts that the Federal Reserve will deliver its next interest rate cut of 25 basis points in March 2025.

The bank said in a note Friday that the move is expected to be followed by two additional cuts of the same magnitude in June and September.

"We expect the Fed to deliver its next 25bp cut in March followed by two more 25bp cuts in June and September to a terminal rate range of 3.5-3.75%," the bank wrote.

Goldman also anticipates that the Fed will slow its balance sheet runoff in January 2025 and halt it entirely by the second quarter. Boeing slumps after South Korea crash

Boeing (NYSE:BA ) shares fell more than 4% after a devastating air accident in South Korea claimed the lives of 179 people on Sunday when a passenger plane crash-landed at Muan International Airport.

The aircraft, a Boeing 737-800, skidded off the runway, colliding with a wall and erupting in flames, making it the deadliest aviation disaster in the country’s history. Crude heads for annual losses

Crude prices edged higher Monday in thin holiday-impacted trade at the start of the final week of the year. 

By 09:35 ET, the US crude futures (WTI) climbed 0.8% to $71.17 a barrel, while the Brent contract rose 0.8% to $74.25 a barrel.

Both benchmarks are on course for hefty losses in 2024, with the WTI contract down around 1% and Brent over 3.5% lower so far, largely on concerns over slowing demand in China, the world’s largest oil importer.

 

Source: Investing.com