Despite recent losses, the major indexes have achieved substantial gains for the year, with multiple all-time highs recorded along the way.
NEW YORK, Dec. 31 (Xinhua) -- U.S. stocks ended lower on Tuesday, as the U.S. equity market failed to end 2024 on a high note.
The Dow Jones Industrial Average fell 29.51 points, or 0.07 percent, to 42,544.22. The S&P 500 sank 25.31 points, or 0.43 percent, to 5,881.63. The Nasdaq Composite Index shed 175.99 points, or 0.90 percent, to 19,310.79.
Six of the 11 primary S&P 500 sectors ended in green, with energy and real estate leading the gainers by adding 1.35 percent and 0.76 percent, respectively. Meanwhile, technology and consumer discretionary led the laggards by dropping 1.04 percent and 0.98 percent, respectively.
Large-cap technology stocks, which have been market leaders for much of the year, faced renewed pressure this week. Tesla led the selloff, dropping 3.25 percent on Tuesday and marking its fourth consecutive day of losses. The electric vehicle giant has shed 12 percent over the past four days as investors await its fourth-quarter deliveries report, set for release on Thursday. Other tech heavyweights also retreated, with Nvidia down 2.33 percent and declines also in Apple, Microsoft, Alphabet, Amazon, and Meta Platforms.
Meanwhile, the U.S. 10-year Treasury yield ticked up to 4.573 percent, reflecting ongoing investor expectations of higher interest rates. This slight increase from Monday's 4.55 percent highlights the persistent influence of monetary policy concerns on market sentiment.
Despite recent losses, the major indexes have achieved substantial gains for the year, with multiple all-time highs recorded along the way. The S&P 500 has posted a remarkable performance in 2024, climbing over 23 percent and building on its impressive 24.2 percent gain from 2023. This two-year surge of approximately 53 percent marks the strongest back-to-back performance since 1997 and 1998.
The Dow Jones Industrial Average also delivered a solid year, rising nearly 13 percent, while the Nasdaq Composite emerged as the standout performer among the major indexes with a 29 percent gain this year.
"I think a lot of what drove that enthusiasm is you had good developments on all those fronts in 2024. You had inflation on a downward trajectory, the Fed coming out aggressively in September when they started cutting rates," said Yung-Yu Ma, chief investment officer for BMO Wealth Management.
"And for a lot of the time you had a 10-year Treasury yield that was very well-behaved, along with earnings growth. So you got everything together at once that was going well," Ma said.
The market is closed on Wednesday for New Year's Day. A Citi Investment Strategy report this month advised investors to be prepared for more volatile markets as U.S. policy shows greater impact across the world in the coming year. ■