The Dow Jones Industrial Average plummeted 418 points, or 1%, at 4:00 p.m. ET on Monday, with the S&P 500 index trading 1.1% lower and the NASDAQ Composite dropping 1.2%. Despite these losses, the major averages are expected to close 2024 near record levels, with the S&P 500 and DJIA up more than 23% and 14%, respectively.
The strong year-end performance is attributed to investors taking profits ahead of a potential change in economic trends. The Nasdaq Composite has gained around 30% this year, and it’s on track for its longest quarterly winning streak since the second quarter of 2021.
Goldman Sachs predicts that the Federal Reserve will deliver its next interest rate cut of 25 basis points in March 2025, followed by two additional cuts. This move is expected to slow down the Fed’s balance sheet runoff and halt it entirely by the second quarter.
Meanwhile, Boeing shares slumped over 2% after a devastating air accident in South Korea claimed the lives of 179 people. Crude prices edged higher Monday, but are still on course for annual losses, largely due to concerns over slowing demand in China.
As the year draws to a close, investors will be closely watching economic data and market trends, including the Institute of Supply Management’s manufacturing activity survey for December and jobless claims reports.
Source: https://www.investing.com/news/stock-market-news/us-stocks-slump-as-2024-nears-the-end-djia-drops-over-500-points-3791205