US equity futures experienced a significant drop on the penultimate day of 2024, dashing any hopes of a late Santa rally. The momentum in technology shares and among momentum chasers came to a halt in the final trading sessions of the year. S&P 500 futures declined by 1%, marking the third consecutive session of losses, indicating continued weakness on Wall Street following Friday’s tech megacaps-led retreat. Nasdaq futures also slipped by 1%.
The decline was widespread, with Europe’s Stoxx 600 index and Asian stocks both ending a five-day winning streak. Treasuries saw a rebound, with the 10-year yield dropping from its recent highs. The dollar and gold remained relatively stable, while bitcoin showed minor fluctuations. The economic calendar for the US included key data releases such as the December MNI Chicago PMI, November pending home sales, and December Dallas Fed manufacturing activity.
Tech giants like Apple, Nvidia, Microsoft, Alphabet, Amazon, Meta Platforms, and Tesla were all in the red during pre-market trading. Boeing shares took a hit following a plane crash, while Axsome Therapeutics also saw a decline after announcing trial results. The concentration of gains in the S&P 500 by a few tech supergiants raised concerns among some market participants.
European and Asian stocks followed the downward trend, with trading volumes remaining thin. The Bloomberg Dollar Spot Index dropped slightly, while the euro strengthened. Treasuries saw a rise in prices, causing yields to fall. Oil prices declined, while gold was on track for significant annual gains. Bitcoin showed some volatility, reaching towards $94,000 before reversing.
Overall, the market snapshot showed a mixed picture with various global indices experiencing losses. Key news developments included tributes for former US President Jimmy Carter, Elon Musk’s growing influence, and warnings from Treasury Secretary Yellen regarding the debt ceiling. The article also covered developments in the tech industry, global politics, and the economy.