After moving sharply lower early in the session, stocks regained some ground over the course of the trading day on Monday but remained firmly in negative territory. The major averages added to the steep losses posted last Friday.
The Dow climbed off its worst levels after tumbling by more than 700 points in early trading but still ended the day down 418.48 points or 1.0 percent at 42,573.73.
The tech-heavy Nasdaq also dove 235.25 points or 1.2 percent to 19,486.78 and the S&P 500 slumped 63.90 points or 1.1 percent to 5,906.94.
The early weakness on Wall Street reflected an extension of the sell-off seen last Friday, with some traders taking profits going into the end of the year.
The major averages still remain poised to post substantial gains for 2024, as the tech-heavy Nasdaq is up by nearly 30 percent for the year.
Technology stocks climbed off their worst levels after helping lead the early slump but still ended the day notably lower.
Significant weakness was visible among semiconductor stocks, as reflected by the 1.9 percent loss posted by the Philadelphia Semiconductor Index.
Outside the tech sector, gold stocks saw considerable weakness amid a decrease by the price of the precious metal, dragging the NYSE Arca Gold Bugs Index down by 1.8 percent.
Pharmaceutical, healthcare and retail stocks also saw notable weakness, moving lower along with most of the other major sectors.
A slump by shares of Boeing (BA) also weighed on the Dow, as the aerospace giant tumbled by 2.3 percent after South Korea’s Transport Ministry ordered an inspection of B737-800 aircraft after the deadly Jeju Air crash over the weekend.
The early sell-off on Wall Street may have been exaggerated by below average volume, as many traders remain away from their desks ahead of the New Year’s Day holiday on Wednesday.
In U.S. economic news, a report released by the National Association of Realtors showed pending home sales surged by much more than expected in the month of November.
NAR said its pending home sales index shot up by 2.2 percent to 79.0 in November after jumping by 1.8 percent to 77.3 in October. Economists had expected pending home sales to climb by 0.7 percent.
The pending home sales index increased for the fourth consecutive month, reaching its highest level since February 2023.
Other Markets
In overseas trading, stock markets across the Asia-Pacific region moved mostly lower on Monday. Japan’s Nikkei 225 Index slumped by 1.0 percent and South Korea’s Kopsi dipped by 0.2 percent, although China’s Shanghai Composite Index bucked the downtrend and inched up by 0.2 percent.
Meanwhile, the major European markets all moved to the downside on the day. While the French CAC 40 Index slid by 0.6 percent, the German DAX Index and the U.K.’s FTSE 100 Index both fell by 0.4 percent.
In the bond market, treasuries regained ground following the weakness seen last Friday. As a result, the yield on the benchmark ten-year note, which moves opposite of its price, declined 7.4 basis points to 4.545 percent.
Looking Ahead
A lack of major U.S. economic data may lead to another light trading day on Tuesday, as some traders look to get a head start on their New Year’s Eve celebrations.
Business News
U.S. Stocks Climb Off Worst Levels But Close Sharply Lower
2024-12-30 21:15:06
