Wall Street Opens on Downbeat Note as Stocks Slog to Finish of Triumphant Year
US stocks opened on a downbeat note as Wall Street slogged to the finish of a largely triumphant year. The S&P 500 lost about 0.8%, while the tech-heavy Nasdaq Composite shed 1.3% Friday morning. The Dow Jones Industrial Average lost 0.3%. Meanwhile, the 10-year Treasury yield hovered near seven-month highs around 4.6%.
Wall Street has just three trading days remaining in a 2024 full of big gains and is hoping to resume a “Santa Claus” rally into the end of the year. The benchmark S&P 500 is up more than 26% on the year, while the Nasdaq Composite is up over 30%. The blue-chip Dow has risen a more modest 14%.
Markets have largely digested the year’s remaining key economic data points, and investors are now turning their attention to two big themes for the coming year: the Federal Reserve’s path for interest rates and the implications of Donald Trump’s ascent back to the White House.
On the former, stocks have largely taken in stride the Fed’s plans to scale back rate cuts next year after an initial plunge last week. Bets have now shifted squarely to May as the next meeting at which the Fed will slash interest rates, as it continues to grapple with stubborn inflation while keeping a close eye on a cooling labor market.
And on the latter, while Trump talked up his big plans during the campaign, especially on the economy, those plans could soon face a reality check from other key power players.
Overall, despite the downbeat start to the day, Wall Street is still on track for a winning week as the year comes to a close. Investors will be closely watching how the market reacts in the final days of 2024 and what the new year will bring in terms of economic policies and market trends.
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