The Dow Jones fell another 400 points on Monday, carrying on from last Friday’s 300-plus point fall as the year appears to be ending on a sour note for Wall Street benchmarks.
| Company | Value | Change | %Change |
|---|
The 30-stock index fell for the second-day running, shedding 1% to close below the 43,000 mark. The S&P 500 and the Nasdaq Composite fell 1.1% and 1.2% respectively, declining for the third day in a row.
At one point, the Dow Jones was down over 700 points. Trading remained thin as the SPDR S&P 500 Trust had 47 million shares traded, a relatively low volume on a day with a significant market fall.
This is also the third time in the last eight trading sessions where the S&P 500 and the Nasdaq have shed 1% or more in a session.
The Bloomberg Dollar Spot Index is on track for its best year since 2015. Treasuries rallied on Monday, with the 10-year yield hovering around 4.54%.
Yields had declined further after Chicago Purchasing Managers’ Index data showed an unexpected decline. Data on Monday also showed pending sales of US homes increasing for a fourth month in November to the highest level since early 2023.
This year, the so-called Magnificent Seven cohort of US tech giants has driven an advance of more than 20% in the S&P 500, while prompting some to worry that the gains are too concentrated in a small group of names. Still, few are calling for the rally to end and none of the 19 strategists tracked by Bloomberg expects the S&P 500 to decline next year.
“There’s a little bit of trepidation heading into year-end, owing in part to uncertainty over how the international trade picture may take shape in 2025,” said Tim Waterer, chief market analyst at Kohle Capital Markets Pty. “Some traders are taking risk off the table heading into year-end.”
Among commodities, oil edged higher as traders focused on 2025 risks. US natural gas futures soared as the weather outlook for January shifted colder. Gold is set for a blockbuster year.
“I really think we’re going to take a pause this next year,” Jeremy Siegel, senior economist at WisdomTree and emeritus professor of finance at University of Pennsylvania’s Wharton School of Business, said Monday on CNBC’s “Squawk on the Street.”
“I think the probability of a correction next year, which is defined as a 10% drop in the S&P, is getting higher,” Siegel said. “The major forces to propel things upward I think have already been built in.”
(With Inputs From Agencies.)
