Stock Market Update: World Shares Retreat as Trading Year Ends
Global shares retreated, marking a subdued end to 2024 without the widespread enthusiasm that pushed many markets to record highs earlier in the year. Tokyo’s Nikkei 225 index fell by 1% to 39,894.54, closing the year on a solemn note as Japan Exchange Group’s CEO Hiromi Yamaji addressed an insider trading incident during the yearend ceremony. He emphasized the importance of trust in the market for investors to trade with confidence and pledged efforts to rebuild trust and prevent such lapses in the future.
In European trading, Germany’s DAX and France’s CAC 40 both lost 0.4%, with Britain’s FTSE 100 also down 0.4%. Futures for the S&P 500 and Dow Jones Industrial Average were 0.3% lower. South Korea’s Kospi dropped 0.2% to 2,399.49, while Jeju Air Co. shares plummeted 8.7% following a tragic incident involving one of their jets. The plane skidded off a runway, crashing into a wall and catching fire, resulting in the loss of 179 lives.
Law enforcement in South Korea sought a court warrant to detain impeached President Yoon Suk Yeol, investigating whether actions taken in early December constituted rebellion. In contrast, markets in Hong Kong, Shanghai, and Australia reported varied performance, with losses and gains recorded across exchanges.
Friday saw declines in the US market, with the S&P 500 and Dow Jones Industrial Average dropping by 1.1% and 0.8% respectively. The tech-heavy Nasdaq composite fell by 1.5%. Notably, prominent tech stocks, referred to as the “Magnificent 7,” experienced significant declines, affecting overall market direction. Nevertheless, the S&P 500 looks forward to an annual gain of approximately 25% in 2024, following a robust economy supported by strong consumer spending and a resilient labor market amid easing inflation.
Recent economic data indicates a decline in wholesale trade industry sales and inventory estimates, coupled with steady unemployment benefits. These factors, alongside the Federal Reserve’s interest rate policy adjustments and market expectations for cuts, have contributed to ongoing market gains. Additionally, oil prices and currency exchanges are witnessing fluctuations.
As we step into another year, the financial markets are navigating shifts influenced by both economic data and global events. It remains crucial for investors to stay informed and remain adaptable to the evolving landscape.
