The S&P 500 experienced a decline on Monday, as investors decided to take some profits on stocks towards the end of a strong year.
By 4:00 p.m. ET (21:00 GMT), the Dow Jones Industrial Average was down 418 points, or 1%, the S&P 500 traded 1.1% lower, and the Nasdaq dropped 1.2%.
Despite these losses, the major averages are poised to finish 2024 near record levels, with the S&P 500 and DJIA up more than 23% and 14%, respectively, marking the best year since 2021. The Nasdaq has also seen gains of around 30%.
The benchmarks are also on track for a successful fourth quarter following Donald Trump’s election win, with the Nasdaq heading towards its longest quarterly winning streak since the second quarter of 2021.
Fed’s Expected Rate Cut in March – Goldman
Recent economic data indicated a rise in [specific data] for November, but a lower than anticipated figure for December [specific data].
Later this week, investors will closely monitor the Institute of Supply Management’s [specific survey] for December and a weekly report on [specific data], in anticipation of a key [specific report] in the following week.
Goldman Sachs forecasts that the Federal Reserve will implement its next interest rate cut of 25 basis points in March 2025.
In a note released on Friday, the bank projected that this move would be followed by two more cuts of the same magnitude in June and September.
“We anticipate the Fed to reduce rates by 25bp in March, followed by two additional 25bp cuts in June and September, bringing the terminal rate range to 3.5-3.75%,” the bank stated.
Goldman also predicts that the Fed will slow down its balance sheet reduction in January 2025 and completely halt it by the second quarter.
Boeing Shares Decline Following South Korea Crash
Boeing (NYSE:) witnessed a drop of more than 2% after a tragic aviation incident in South Korea resulted in the loss of 179 lives on Sunday, when a commercial aircraft crash-landed at Muan International Airport.
The Boeing 737-800 plane skidded off the runway, collided with a wall, and caught fire, marking the deadliest aviation disaster in the country’s history.
Crude Oil Heading Towards Annual Losses
Crude oil prices saw a slight increase on Monday amidst light trading due to the holiday season as the final week of the year began.
Both benchmarks are on track for significant losses in 2024, with the WTI contract down approximately 1% and Brent crude over 3.5% lower so far, primarily due to concerns regarding slowing demand in China, the world’s largest oil importer.