(Reuters) – Tech and growth stocks dragged Wall Street’s main indexes lower on Friday, at the end of an upbeat holiday-shortened week that was driven by expectations around a traditionally strong period for markets.
The Dow Jones Industrial Average fell 0.82%, the S&P 500 was down 1.24% and the Nasdaq Composite briefly fell more than 2% and was down 1.80%.
Ten of the 11 major S&P sectors, including information technology and consumer discretionary fell the most, down about 2% and 1.9%, after powering most of the broader market’s gains in 2024.
COMMENTS:
PETER TUZ, PRESIDENT, CHASE INVESTMENT COUNSEL, CHARLOTTESVILLE, VIRGINIA
“This is end of year stuff going on people have had a pretty good year, and it’s typical year-end selling pressure caused by people taking profits, not a lot of buyers out there and not a lot of volume.“
“(There’s) no reason to jump in and buy these things at these valuations, and tax planning is on peoples’ minds this week and will be on Monday and Tuesday. I don’t attribute it to, you know, any changing outlook in anything right now.”
“The Santa Claus rally is one of those historic statistics that bears watching, but because of the change in administration and the potential change in policy you’re probably seeing more action now than you would ordinarily. There’s the potential for a lot of disruption in 2025.”
BRYCE DOTY, SENIOR PORTFOLIO MANAGER, SIT FIXED INCOME ADVISORS, MINNEAPOLIS
“Today the market has really been reacting to the implications of taxes coming up. Tax positioning is overwhelming the other factors. But the more the Fed looks out of touch (with economic realities), the worse it is for equities…Tax trading will continue for the rest of the year.”
(Compiled by the Global Finance & Markets Breaking News team)