US Stocks Decline Amid Profit-Taking as 2024 Nears Its End - 30th December, 2024

US Stocks Decline Amid Profit-Taking as 2024 Nears Its End - 30th December, 2024

30th December, 2024

U.S. stocks dropped sharply on Monday, driven by profit-taking as the market wraps up a largely positive 2024.

As of 09:35 ET (14:35 GMT), the Dow Jones Industrial Average fell by 505 points, or 1.2%, the S&P 500 lost 71 points, or 1.2%, and the NASDAQ Composite declined 280 points, or 1.4%.

Despite these losses, major indices are set to end the year near record highs. The S&P 500 and Dow Jones Industrial Average have gained over 23% and 14%, respectively, marking their best year since 2021. The Nasdaq has surged approximately 30%.

The benchmarks are also on track for a winning fourth quarter, buoyed by Donald Trump’s election victory. The Nasdaq is heading for its longest quarterly winning streak since Q2 2021.

Goldman Sachs Predicts Fed Rate Cuts in 2025

Monday’s economic data releases include November’s pending home sales and the December Chicago PMI. However, trading activity is expected to remain light ahead of the midweek market closure.

Later this week, investors will focus on the Institute of Supply Management's December manufacturing activity survey and weekly jobless claims data, ahead of a critical employment report due the following week.

Goldman Sachs forecasts the Federal Reserve will implement its next interest rate cut of 25 basis points in March 2025, followed by two additional cuts of the same size in June and September.

In a note released Friday, the bank stated:
"We expect the Fed to deliver its next 25bp cut in March, followed by two more 25bp cuts in June and September, bringing the terminal rate range to 3.5-3.75%."

Goldman also anticipates the Fed will slow its balance sheet reduction in January 2025 and halt it entirely by Q2 2025.

Boeing Shares Tumble After South Korea Crash

Boeing (NYSE:BA) shares dropped over 4% following a tragic aviation accident in South Korea. On Sunday, a Boeing 737-800 crash-landed at Muan International Airport, resulting in 179 fatalities. The aircraft skidded off the runway, collided with a wall, and burst into flames, marking the deadliest air disaster in South Korea’s history.

Crude Oil Edges Higher but Faces Annual Losses

Crude oil prices inched up on Monday in thin holiday trading, marking the start of the final week of the year.

By 09:35 ET, U.S. crude futures (WTI) rose 0.8% to $71.17 per barrel, while Brent crude increased 0.8% to $74.25 per barrel.

Despite the modest gains, both benchmarks are on track for substantial losses in 2024. WTI has declined around 1%, and Brent is down over 3.5%, driven by concerns about slowing demand from China, the world’s largest oil importer.

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