Wall Street selloff at year-end leads to profit-taking, driven by tech and AI stocks

From Investing.com: 2024-12-31 06:24:00

Wall Street ends the year with a selloff after a record-breaking rally, driven by tech and AI stocks, as investors cash in on gains and uncertainty looms for 2025. The Fed signals a possible pause in rate cuts, causing caution in the market as traders eye May for a potential rate cut. Trump’s tariff war and chaotic leadership style contribute to market uncertainty. Despite the year-end pullback, equities still post strong gains, particularly the Nasdaq and S&P 500. Asian markets see mixed performance, with Japan’s Nikkei outperforming and Chinese indices boosted by stimulus policies.

PMI data from China fails to lift sentiment on the last trading day of the year, with manufacturing activity below expectations. Oil prices get a boost from signs of stronger domestic demand. Focus shifts to manufacturing data from the US later in the week. Dollar softens as Treasury yields drop sharply, leading investors to bonds. Yields expected to rebound as US debt ceiling suspension expires in January. Greenback set to finish 2024 strong, with the yen facing pressure from intervention fears and rate hike speculation.



Read more at Investing.com: Stocks, US Dollar Hit by Profit-Taking as 2024 Wraps Up