NEW YORK, Dec. 30 (Xinhua) -- U.S. stocks ended lower on Monday, as Wall Street seemed poised to conclude a strong year with a somber close.
The Dow Jones Industrial Average fell 418.48 points, or 0.97 percent, to 42,573.73. The S&P 500 sank 63.90 points, or 1.07 percent, to 5,906.94. The Nasdaq Composite Index shed 235.25 points, or 1.19 percent, to 19,486.78.
All of the 11 primary S&P 500 sectors ended in red, with consumer discretionary and materials leading the laggards by losing 1.59 percent and 1.34 percent, respectively. Energy posted the weakest decline, down 0.08 percent.
Typically, the "Santa Claus rally" -- spanning the last five trading days of the year and the first two of the new year -- averages a 1.3 percent gain, according to historical data. However, this year's underperformance reflects broader market uncertainties, including rising U.S. Treasury yields and concerns over the Federal Reserve's interest rate policy heading into 2025. Over the seven trading days beginning Dec. 24, the S&P 500 has slipped nearly 1 percent, diverging from its usual upward trend.
As markets prepare to close out 2024, U.S. stocks are weighed down by declines in major tech firms like Apple and Microsoft. Boeing also faced pressure following a tragic incident involving one of its jets, which skidded off a runway in South Korea. Manufacturing concerns, supply chain issues and industrial action have caused shares in Boeing to fall by more than 30 percent this year.
Despite the bad news, the strong performance of the stock market this year has provided ample opportunities to capitalize on profits. The S&P 500 has climbed an impressive 24 percent, positioning it for its best annual performance since 2021. Meanwhile, the tech-heavy Nasdaq Composite has outpaced broader markets, soaring 30 percent year to date, driven by surging demand for technology stocks, particularly those benefiting from advancements in artificial intelligence and cloud computing.
Citi U.S. equity strategist Scott Chronert wrote in a recent note to clients that the "fundamentals" that have driven the market rally remain intact. "If the fundamental story holds, we would be buyers of first half pullbacks in the S&P 500," Chronert wrote. ■
