US market plummeted steeply on Monday, December 30, 2024, ahead of New Year's Eve. All indices such as Dow Jones, S&P 500, and Nasdaq Composite dropped by around 1% each. With that, Wall Street has extended its losses. Although the trading pattern remained in the narrow range ahead of the New Year holiday on January 1, investors awaited ISM Manufacturing PMI data which is due later in the week. Tech giants like Apple, Microsoft, Tesla, Amazon, Google, and Broadcom dragged the overall performance.
US Market On December 30:
Dow Jones: The Dow Jones Industrial Average or DJIA tumbled by 340.71 points or 0.79% to trade at Rs 42,651.50. The index ranged between an intraday high and low of 42,651.50 to 42,263.51 respectively. Overall, Dow Jones slipped by nearly 2%.
S&P 500: This index traded at 42,992.21, shedding 48.76 points or 0.8%. The benchmark was near its intraday low of 5,869.16.
Nasdaq Composite: The tech-heavy index dipped by 179.18 points or 0.9% to trade at 19,542.85. The index ranged between an intraday low of 19,342.51 to 19,552.65.
Tech stocks dragged the overall performance. Apple, Microsoft, Tesla, Amazon, Broadcom, Meta, and Google shares dived by 1% to 2.5%. While heavyweights like Walmart, Berkshire Hathaway, Procter & Gamble, Costo, and Eli Lilly also nosedived by 1% to 8%, contributing to the downfall.
Among the gainers were Nvidia shares which jumped by over 1%.
According to Trading Economics, US stocks fell sharply on Monday, extending the pullback from Friday despite the halt in the selloff for US Treasuries as markets assessed the Fed's policy outlook for next year. The three main averages were 1% lower. Trading volumes remained thin ahead of the New Year's holiday on Wednesday, but investors await the ISM Manufacturing PMI due Friday for more hints on whether factory activity deteriorated further enough to warrant less restrictive borrowing costs by the Fed.
Further, Trading Economics data said, that tech hares led the losses with pressure from Nvidia and Amazon, trimming the sector's rally that carried the surge in US equity indices this year. In turn, Boeing sank 5% after one of the company's 737-800 aircraft operated by Jeju Air crashed over the weekend. The S&P 500 and the Nasdaq 100 are due to close the year 27% and 30% higher, respectively, while the Dow's larger composition of defensive stocks and lower exposure to speculative tech stocks left the index on course for a softer 14% gain.
The dollar index climbed to over 108.3 level against a basket of currencies, nearing its two-year old high of 108.4 which it achieved earlier on December 18th. Overall, the dollar is set for an upside of 6% in 2024 so far. Some of the fuelling factors for the dollar are Donald Trump's victory, the Republican party's tariff and policies impact and the Fed's hawkish remarks for 2025 rate cuts.
Meanwhile, the 10-year treasury yield of the USA touched 4.55% on Monday, dropping by about 10 bps from its 7-month high that was recorded last week on Friday. The market continues to focus on economic data and policy developments that could give better clarity on the Fed's rate cut stance in 2025.
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