U.S. Stocks May See Further Downside After Friday’s Sell-Off
30 Dezembro 2024 - 11:12AM
IH Market News
The major U.S. index futures are currently
pointing to a lower open on Monday, with stocks likely to see
further downside following the sharp pullback seen last Friday.
Concerns about a recent increase by U.S. treasury yields may
weigh on Wall Street, as the yield on the benchmark ten-year note
closed above 4.6 percent for the first time since late May on
Friday.
Treasury yields have surged in recent weeks due in part to the
Federal Reserve forecasting fewer than previously estimated
interest rate cuts in 2025.
The increase by treasury yields may also reflect worries about
the impact President-elect Donald Trump’s policies will have on the
U.S. budget deficit.
A slump by shares of Boeing (NYSE:BA) is also likely to weigh on
the Dow after South Korea’s Transport Ministry ordered an
inspection of B737-800 aircraft after the deadly Jeju Air crash
over the weekend.
Trading activity may be relatively subdued, however, as some
traders are likely to remain away from their desks ahead of the New
Year’s Day holiday on Wednesday.
U.S. stocks tumbled on Friday and the major averages all closed
notably lower, with the tech-laden Nasdaq suffering a more
pronounced loss as the yield on ten-year note rose to a nearly
eight-month high.
The Dow closed down 333.59 points or 0.8
percent at 42,992.21, well off the day’s low of 42,761.56. The
S&P 500, which dropped as low as 5,932.95, settled at 5,970.84
with a loss of 66.75 points or 1.1 percent, while the Nasdaq ended
lower by 298.33 points or 1.5 percent at 19,722.03, recovering from
a low of 19,533.40.
However, the Dow posted a weekly gain of about 1.4 percent,
while the S&P 500 and the Nasdaq both moved up by more than 1.5
percent during the week.
Tesla (NASDAQ:TSLA) closed nearly 5 percent down, while Apple
(NASDAQ:AAPL), Nvidia (NASDAQ:NVDA), Alphabet (NASDAQ:GOOGL),
Microsoft (NASDAQ:MSFT), Amazon (NASDAQ:AMZN), Oracle (NYSE:ORCL),
Netflix (NASDAQ:NFLX), Accenture (NYSE:ACN), Morgan Stanley
(NYSE:MS) and Micron Technology (NASDAQ:MU) lost 1 to 3
percent.
On the economic front, data showed U.S. retail inventories,
excluding autos, increased by 0.6 percent month-over-month in
November following an upwardly revised 0.3 percent rise in the
prior month, according to preliminary estimates.
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