Market Recap (12/22/24)
Market Recap of the Week of Dec 16, 2024 - Dec 20, 2024
Source: Apple Stocks Application
Overall Market Trends:
Last week, the stock market tanked with all four major indices posting major weekly losses. The New York Stock Exchange Composite (NYSE) tumbled 613 points (-3.11%), the S&P 500 fell 120 points (-1.98%), the NASDAQ Composite slid 350 points (-1.75%), and the Dow Jones Industrial Average declined 988 points (-2.25%).
The NASDAQ and S&P 500 both rose on Monday behind Tesla (NASDAQ: TSLA), Alphabet (NASDAQ: GOOG), and Broadcom (NASDAQ: AVGO). Tesla continued its steady rise in recent weeks, gaining 5% while Alphabet rose 2%. Broadcom soared nearly 11% after the company topped the $1 trillion market cap feat in the previous session following the company’s strong earnings report.
Stocks fell on Tuesday as the Dow Jones marked its 9th consecutive losing day. The Dow’s recent, consistent decline has been the result of a shift out of more old-economy stocks into technology stocks. Tesla rose again while Broadcom declined nearly 4%. These results come as investors prepare for the Federal Reserve’s policy meeting with their interest-rate decision to come out on Wednesday.
The market plummeted on Wednesday after a rocky rate outlook by the Fed after their policy meeting. While the Fed did cut rates by a quarter point, they indicated that 2025 would only encompass two rate cuts rather than the predicted four. Specifically, Federal Reserve Chair Jerome Powell stated that the Fed’s prior rate cuts will allow it to “be more cautious as [they] consider more adjustments to our policy rate.” This news pushed the Dow’s losing streak to 10 days, the longest since 1974. All four major indices dropped over 2.50% with the NASDAQ falling over 3.50%.
On Thursday, stocks rebounded early on, but declined as the day proceeded, with the market ending relatively flat. However, the Dow Jones etched out a close win, finishing the day up just 0.04% and ending its losing streak.
Stocks rebounded Friday after a cooler-than-expected inflation reading. The Personal Consumption Expenditures (PCE) report rose just 0.3% in November, less than the expected 0.4%. The report helped defuse the Fed’s statements on Wednesday about scaling back rate cuts for 2025, resulting in all 11 sectors finishing the day higher.
Past Earnings Report:
Looking Towards the Future
Upcoming Important Economic Events:
Monday: Consumer Confidence
Tuesday: Durable-goods orders; Market closes early for Christmas Eve Holiday
Wednesday: Market closed for Christmas Holiday
Thursday: Initial jobless claims
Future Earnings Reports: