(Bloomberg) — US stocks declined in the final session of the year but still closed out the best two-year run since 1998.
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The S&P 500 Index fell 0.4% in its fourth down day, the longest losing streak to end a year since 1966. The Nasdaq 100 declined 0.9% and the Dow Jones Industrial Average fell 0.1%. The Russell 2000 Index rose 0.1%.
S&P 500 Index has surged 23% this year, stoked mostly by the hype around artificial intelligence breakthroughs. But gains slowed in the final quarter of the year, as the pace of the rally raised concerns and investors grew jittery about factors such as President-elect Donald Trump’s protectionist policies and the possibility of fewer interest-rate cuts from the Federal Reserve.
The index fell 2.5% in December, marking its weakest return since April. It’s currently trading below its 50-day moving average — seen as a key short-term technical support level. Only 18% of stocks are trading above their 50-day moving average.
December has turned into a challenging month for most US stock indexes. The small-cap Russell 2000 is down more than 8% on the month, the worst monthly performance since September 2022.
“November and early December were very concentrated at the top of the market so it didn’t take much once those names took at breather for market to loose momentum,” wrote Walter Todd, president and chief investment officer at Greenwood Capital Associates. “Valuations are elevated, there are a lot of unknowns regarding new administration and the move higher in rates have been problematic for stocks.”
Read more on: S&P 500’s 2024 Rally Shocked Forecasters Expecting It to Fizzle
Among prominent movers, US Steel shares jumped after the Washington Post reported that Nippon Steel offered the Biden administration a veto over output cuts as part of a last-ditch bid for US approval of its proposed merger, citing a document sent to the White House. Shares of Sangamo Therapeutics plummeted after Pfizer ended its collaboration and license agreement with the firm to develop a new gene therapy for hemophilia A.
Sectors to Watch
Watch homebuilders stocks as US October home prices rose above expectations, according to data from S&P CoreLogic Case-Shiller.
Keep an eye on crypto stocks such as MARA Holdings, MicroStrategy, Cipher Mining as bitcoin posted the biggest gain in more than a week
Markets at a Glance
S&P 500 Index fell 0.4%
Dow Jones Industrial Average fell 0.1%
Nasdaq Composite Index fell 0.9%
Nasdaq 100 Index fell 0.9%
Russell 2000 Index rose 0.1%
10-year Treasury yield rose 3.6 basis points
Cboe Volatility Index fell 0.03 points
Bloomberg Dollar Index rose 0.4%
West Texas Intermediate crude rose 1.1% to $72 a barrel
Euro fell 0.5%
Here Are the Most Notable Movers
Hawaiian Electric Industries shares declined 0.1% after the company announced that it closed the sale of 90.1% of common stock of American Savings Bank (ASB) to independent investors for $405 million in cash.
US Steel shares rose 9.54% after the Washington Post reported that Nippon Steel offered the Biden administration a veto over output cuts as part of a last-ditch bid for US approval of its proposed merger, citing a document sent to the White House.
Aimco shares rose 8.34% after the REIT entered into an agreement to sell Brickell Bay properties for a gross price of $520 million.
VeriSign Inc. shares rose 0.9% after Berkshire Hathaway and Warren Buffett reported a series of insider transactions to the US Securities and Exchange Commission.
Verastem shares rose 40.87% after the biopharmaceutical company said FDA accepted to review its New Drug Application (NDA) for the treatment of adult patients with recurrent low-grade serous ovarian cancer.
Acadia Pharmaceuticals Inc. shares rose 9.95% after the announcement that the stock will replace Independent Bank Group Inc. in the S&P SmallCap 600 effective prior to the opening of trading on Jan. 3.
Notes From the Sell-Side
CMS Energy shares gained after Argus recommended buying the shares on recent weakness after the utility stock dropped more than 4% over the past month.
Yum! Brands Inc. shares rose 0.4% as Argus Research Corp raised the recommendation on the restaurant chain operator to buy from hold, saying solid same-store sales at KFC and Taco Bell are likely to boost results in 2025.
Ralph Lauren was upgraded by as Argus Research Corp with analysts citing stronger demand internationally.
Related Market News
European Stocks: Equity markets in the UK and France rose in thin trading, leading the European benchmark to wrap up 2024 with modest gains.
Inside Asia: A gauge of Asian currencies is set for a fourth year of declines after the dollar strengthened amid the prospect of a less aggressive pace of US interest-rate cuts.
For all the exuberance about Tesla Inc. benefiting from Donald Trump’s return to the White House, Wall Street isn’t so sure the carmaker can avoid its first annual sales decline in over a decade.
This story was produced with the assistance of Bloomberg Automation.
–With assistance from Jessica Menton and Matt Turner.
