2024 Stock Market Update: World Shares Retreat as Trading Year Nears End
stocks took a dip on Monday, marking a slight downturn as a strong year for the market nears its end. The S&P 500 saw a 1.6% decrease in morning trading with nearly all stocks within the index losing ground. Despite this, the benchmark index is still on track for its second consecutive yearly gain of over 20%.
The Dow Jones Industrial Average fell by 680 points, or 1.6%, as of 10:07 a.m. Eastern time, while the Nasdaq composite dropped by 1.7%. Big Tech companies like Apple and Microsoft were major contributors to the market’s slide, with Apple falling by 1.5% and Microsoft by 1.6%. These companies’ high valuations often have a significant impact on the broader market.
Boeing also faced a significant decline of 4.4% after one of its jets skidded off a runway in South Korea, resulting in the tragic loss of 179 out of the 181 individuals aboard. As a result, South Korea has initiated inspections on all 737-800 aircraft operated by airlines in the country. This event compounded Boeing’s already tumultuous year, characterized by a machinists strike, ongoing safety issues with its popular aircraft models, and a sharp decline in its stock value.
Bond yields saw a decrease, with the 10-year Treasury yield dropping to 4.55% from 4.63% and the two-year Treasury yield falling to 4.26% from 4.33% late Friday. On the other hand, crude oil prices experienced a modest 0.9% increase. Energy stocks outperformed the rest of the market, with the sector only slipping by 0.5% within the S&P 500 index.
In global markets, indexes in Europe and Asia mainly fell. With the New Year holiday shortening the trading week, investors have limited corporate and economic news to consider. Markets will be closed on Wednesday, with an updated snapshot of U.S. construction spending for November expected on Thursday and a manufacturing update for December on Friday.
