U.S. stock futures declined on Monday evening following a sharp pullback on Wall Street, as investors engaged in profit-taking at the close of a strong year.
By 6:34 PM ET (23:34 GMT), S&P 500 Futures slipped 0.2%, to 5,946.25 points, while Nasdaq 100 Futures saw a similar decline, falling 0.2% to 21,374.75 points. Dow Jones Futures remained largely unchanged at 42,911.0 points.
Tech Stocks Lead Decline as Treasury Yields Rise
Stocks faced downward pressure as investors took profits, particularly in the technology sector, which had posted substantial gains throughout 2024. At the same time, rising treasury yields intensified the negative sentiment. Higher yields make bonds more appealing to conservative investors seeking lower-risk returns, potentially diverting capital away from equities.
Among the “Magnificent Seven” tech giants, Apple Inc. and Microsoft Corporation both dropped 1.3%. Meanwhile, Meta Platforms and Amazon also saw declines. In contrast, NVIDIA Corporation eked out a modest gain of 0.4%, while Tesla Inc. plummeted more than 3%.
Bank of America recently cautioned that these megacap stocks were “expensive and crowded,” favoring mid-cap stocks as more attractive opportunities for 2025.
Boeing Shares Tumble After Fatal South Korea Crash
Shares of Boeing Co. sank more than 2% following a tragic incident in South Korea, where a Boeing 737-800 crashed during a landing at Muan International Airport on Sunday. The disaster resulted in the deaths of 179 people, marking South Korea’s deadliest aviation accident.
The aircraft skidded off the runway, colliding with a wall and catching fire. This incident has drawn significant attention to Boeing’s safety record.
Wall Street Ends the Day Lower, but 2024 Remains a Strong Year
Despite Monday’s losses, U.S. equities are on track for impressive gains in 2024. The S&P 500 dropped 1.1% to close at 5,906.94 points, the Dow Jones Industrial Average fell 1% to 42,573.73 points, and the Nasdaq Composite slipped 1.2%, settling at 19,486.79 points.
However, all three major indices are poised for substantial yearly gains. The Nasdaq is expected to rise by approximately 30%, the S&P 500 is on track for a 24% increase, and the Dow has gained over 13%, marking the strongest performance since 2021.
Investors will be focused on upcoming economic data, including the Institute for Supply Management’s manufacturing activity survey for December, a weekly jobless claims report, and a key employment report next week, which will offer insights into the health of the U.S. economy heading into the new year.
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