Jamie Spencer
US stocks fell on Monday, with the Dow Jones Industrial Average dropping 418 points, or just under 1%, as the market wrapped up a record-breaking year. The S&P 500 ended the day down slightly over 1%, while the Nasdaq Composite posted the largest loss of the three major indices, falling 1.19%. Big Tech stocks, including Amazon (AMZN), Alphabet (GOOG), and Tesla (TSLA), led the declines as traders moved away from high-growth investments.
Boeing Shares Fall Following Jeju Air Crash
Boeing (BA) was among the hardest-hit stocks on Monday, dropping over 2% by the market close. The decline followed news of a fatal crash involving a Jeju Air 737-800 in South Korea. In response to the incident, South Korean regulators ordered inspections of all 737-800 aircraft, further pressuring Boeing’s stock as concerns over safety and operational risks resurfaced.
Natural Gas Prices Surge Amid Cold Weather Forecasts
In the commodities market, natural gas prices jumped 20% on Monday, hitting their highest level in nearly two years. The surge comes as energy markets brace for a cold snap that could increase demand while simultaneously disrupting supply. The dramatic price hike underscores the volatility in energy markets as extreme weather looms.
Year-End Repositioning Amplifies Market Volatility
The shortened trading week, coupled with thin trading volumes due to the New Year holiday, contributed to heightened market volatility. End-of-year trading strategies also played a role, with traders selling off losing positions to offset gains for tax purposes.
Monday’s losses came amid broader concerns about Federal Reserve policy. Earlier this month, the Fed delivered a widely expected quarter-point interest rate cut but lowered its projections for future rate cuts in the coming year. This cautious stance sparked a selloff that contributed to the Dow’s longest daily losing streak since 1974.
Nasdaq Leads 2024 Gains Despite Monday’s Losses
Despite Monday’s declines, all three major indices are set to end the year with gains. The Nasdaq has outperformed its peers, climbing over 32% year-to-date as of Monday’s close, thanks to strong performance in the tech sector. The Dow and S&P 500 are also on track to record another year of growth, marking a strong overall performance for the market in 2024.
Markets to Close for National Day of Mourning
Looking ahead, US stock markets will be closed on Thursday, January 9, to honor former President Jimmy Carter, who will receive a state funeral in Washington, DC, that day. The New York Stock Exchange and Nasdaq announced the closure as part of the National Day of Mourning declared by President Joe Biden.
Markets Reflect Resilience Amid Challenges
As 2024 draws to a close, the markets show a blend of resilience and volatility. Monday’s declines highlight end-of-year repositioning and policy uncertainties, but the broader picture remains one of strength, with all major indices on track for annual gains. As the market transitions into 2025, traders and investors will continue to navigate a mix of opportunities and challenges in the global economic landscape.
