December 31, 2024 - 05:15
Stocks closed lower on Monday, the penultimate trading day of 2024, despite a year marked by robust double-digit gains across all major indexes. The Dow Jones Industrial Average fell approximately 1%, while the S&P 500 and Nasdaq Composite experienced slightly steeper declines. Notably, the Nasdaq is poised for an impressive annual gain of around 30%, with the S&P expected to rise by about 24%, and the Dow showing a 13% increase over the past year.
David Laut, Chief Investment Officer at Abound Financial, attributed the day's market movements to typical year-end trading behavior, alongside a decline in stock performance that has been evident in recent weeks. He noted, "There’s going to be some rotation happening this time of year. Investors often sell off their winners and reinvest in underperformers as they rebalance their portfolios."
Among the notable market movements, Boeing shares dropped 2% following an emergency safety inspection ordered by South Korea's acting president in the wake of a tragic airline accident. Conversely, American Airlines saw a 1.5% increase after an upgrade in its stock rating, reflecting an improved revenue outlook. Overall, while the year has been strong for the markets, the momentum appears to be waning as 2025 approaches.
