Tech Selloff Shakes U.S. Markets as 2024 Comes to a Close
A significant selloff in the leading technology firms, referred to as the “Magnificent Seven,” impacted U.S. stock indices, creating a volatile finish to a robust year for equities. The S&P 500 (SPY) decreased by roughly 1%, pulling back its weekly gains, while the Nasdaq 100 (QQQ) dropped 1.8%. Market frontrunners Tesla (TSLA) and Nvidia (NVDA) experienced declines of over 3%, exacerbating the downturn during the thin trading periods typical of late December.
Market Performance Summary
- S&P 500 decreased by 1.2%; Nasdaq 100 slipped 1.8%.
- Bloomberg Magnificent 7 Index fell 2.6%, primarily driven by Tesla and Nvidia.
- European stocks remained steady, with the Stoxx Europe 600 rising by 0.4%.
Key Financial Figures
- 10-year U.S. Treasury yields (TLT) remained unchanged at 4.58%.
- Bitcoin dropped 1% to $94,734.51, while Ether saw a minor decline of 0.2% to $3,325.7.
- WTI crude oil increased by 0.8% to $70.17 per barrel; spot gold fell by 0.6%.
Future Market Outlook
- Analysts predict a balanced sentiment will help mitigate extreme volatility in 2025.
- Thin trading during the holiday-shortened week may lead to exaggerated market movements.
- Attention will be directed toward signals from the Federal Reserve regarding rate cuts and any geopolitical risks that may arise.
Financial advisors have largely dismissed the recent market fluctuations, highlighting strong returns thus far in 2024 across various equities. Despite the recent decline, the tech-focused Nasdaq remains one of the best-performing indices, and broader market indices reflect a cautious optimism. The U.S. dollar maintained its value, while gold and bond prices saw little movement, indicating a wait-and-see mindset among investors as they approach the new year.
Although the year-end dip has tempered some of the optimism that characterized much of 2024, analysts believe that the adjusted sentiment sets the stage for a more stable beginning to 2025. Nevertheless, potential surprises in rate policies and geopolitical uncertainties could still unsettle investors in the upcoming weeks.
This article was originally published on Quiver News; read the full story.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
