US stocks fall for the third day. Treasuries Rising: Markets Wrap

(Bloomberg) — A great year for U.S. stocks ends on a sour note as a slump in technology stocks extends a losing streak that began when the Federal Reserve tempered expectations for interest rate cuts two weeks ago.

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This was the third consecutive decline for both the S&P 500 and Nasdaq 100, and also the third time the indexes fell more than 1% in eight sessions. The Bloomberg Spot Dollar Index is on track for its best year since 2015. Treasuries rose on Monday, with the 10-year yield hovering around 4.54%.

Yields fell further after Chicago PMI data showed an unexpected decline. Monday’s data also showed US pending home sales increased for a fourth month in November to the highest level since early 2023.

This year, the so-called “Great Seven” group of US tech giants have posted a more than 20% advance in the S&P 500, while prompting some to worry that gains are too concentrated in a small group of names. However, few are calling for the rally to end, and none of the 19 strategists tracked by Bloomberg expect the S&P 500 to decline next year.

“In these moments, it is better to stay where you are,” said Nicolas Dumont, a fund manager at Optigestion in Paris. “The US is still the sweet spot. Growth stocks continue to outperform and the earnings outlook is good, so there are good reasons to remain optimistic.

Elsewhere, the European STOXX 600 index fell, while Asian stocks ended five days of gains. Trading volumes were lower due to the holiday season.

“There is a bit of fear heading into the end of the year, partly due to uncertainty about how the international trade picture might shape up in 2025,” said Tim Waterer, senior market analyst at Kohle Capital Markets Pty. “Some traders are taking risks.” “Off the table as we approach the end of the year.”

It’s the last session of 2024 for some markets including Germany, where the DAX saw a 19% year-on-year advance.

Among commodities, oil rose as traders focused on 2025 risks. US natural gas futures rose as the weather forecast for January turned colder. Gold is set for a big year.

Carter’s Day of Mourning is January 9

The New York Stock Exchange and Nasdaq Inc.’s U.S. stock exchanges will close. Cboe Global Markets Inc. will be open on January 9, marking a national day of mourning for Jimmy Carter, the 39th President of the United States, who died on Sunday.

CME Group Inc, the operator of US stock markets and interest rates, has not yet commented on its plans. The bond market is scheduled to close at 2 p.m. New York time, based on the recommendation of the Securities Industry and Financial Markets Association.

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