NEW YORK, Dec. 16 (Xinhua) -- U.S. stocks ended mixed on Monday, as investors await the Federal Reserve's policy meeting that will conclude on Wednesday.
The Dow Jones Industrial Average fell 110.58 points, or 0.25 percent, to 43,717.48, registering its eighth consecutive losing session for its longest run of losses since 2018. The S&P 500 added 22.99 points, or 0.38 percent, to 6,074.08. The Nasdaq Composite Index increased 247.17 points, or 1.24 percent, to 20,173.89, notching a record closing high.
Seven of the 11 primary S&P 500 sectors ended in red, with energy and health leading the laggards by losing 2.19 percent and 1.25 percent, respectively. Meanwhile, consumer discretionary and communication services led the gainers by going up 1.74 percent and 1.29 percent, respectively. The tech and consumer discretionary sectors of the S&P 500 also hit record highs, reflecting investor enthusiasm for growth-oriented stocks despite broader market uncertainties.
In contrast, a rebound in U.S. Treasury yields pressured economically sensitive stocks, including smaller companies, banks, and manufacturers. These sectors struggled as higher yields dampened their near-term growth prospects.
While the Federal Open Market Committee (FOMC) is widely expected to cut interest rates at its meeting this week, many market participants anticipate a slower pace of rate reductions moving forward, which could shape market dynamics heading into 2024.
"While it's easy to make a big deal about every single FOMC decision and press conference, this final one of 2024 may be the most intriguing," said Jay Woods, chief global strategist at Freedom Capital Markets.
"Since the first cut in September, unemployment numbers have stabilized," he added. "However, the inflation numbers have ticked the other way ever so slightly. In fact, they have gone up each month since cuts began. Is this just 'sticky' or the start of a new trend?"
In the corporate front, shares of Apple, Alphabet, Tesla, and Broadcom soared to fresh all-time highs on Monday, showcasing the dominance of technology and consumer discretionary stocks in the market rally. Broadcom led the charge, gaining 11.21 percent, as the chipmaker continued to ride the momentum from its 1-trillion-U.S.-dollar valuation milestone reached last week. ■
