(Bloomberg) — A banner year for U.S. stocks is ending badly as a pullback in technology stocks has extended a streak of losses that began when the Federal Reserve cooled expectations for rate cuts two weeks ago.
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It was the third straight decline for both the S&P 500 and the Nasdaq 100, and also the third time the indexes fell more than 1% in eight sessions. The Bloomberg Dollar Spot Index is on track for its best year since 2015. Treasury bonds rose Monday, with the 10-year yield hovering around 4.54%.
Yields had fallen further after data from the Chicago Purchasing Managers’ Index showed an unexpected drop. Data on Monday also showed that pending U.S. home sales rose for a fourth month in November to the highest level since early 2023.
This year, the so-called Magnificent Seven cohort of US tech giants has enjoyed a more than 20% rise in the S&P 500, amid concerns among some that gains are too concentrated in a small group of names. Still, few are calling for an end to the rally, and none of the 19 strategists tracked by Bloomberg expect the S&P 500 to fall next year.
“It is best to stay put at these times,” says Nicolas Domont, fund manager at Optigestion in Paris. “The US remains the place to be. Growth stocks continue to perform well and earnings expectations are good, so there are good reasons to remain optimistic.”
Elsewhere, Europe’s Stoxx 600 index retreated, while Asian shares posted five-day gains. Trading volumes were lower due to the holidays.
“There is some concern heading into the end of the year, partly due to uncertainty about how the international trade picture will shape in 2025,” said Tim Waterer, chief market analyst at Kohle Capital Markets Pty. “Some traders take risks. off the table to the end of the year.”
It’s the last session of 2024 for some markets, including Germany, where the DAX benchmark saw an annual advance of 19%.
In commodities, oil prices rose as traders focused on risks to 2025. U.S. natural gas futures soared as the weather outlook for January turned colder. Gold is primed for a blockbuster year.
Carter’s Day of Mourning on January 9
The New York Stock Exchange, the American stock exchanges of Nasdaq Inc. and Cboe Global Markets Inc. will close on January 9, in honor of a national day of mourning for Jimmy Carter, the 39th US president, who died on Sunday.
CME Group Inc., operator of U.S.-based stock and interest rate markets, had not yet commented on its plans. The bond market will close at 2 p.m. New York time, per the recommendation of the Securities Industry and Financial Markets Association.