The past week or so, the U.S. stock markets attempted a few small rallies entering the year-end holiday season. With shortened trading sessions sprinkled in, many trading days saw light volume. The S&P 500 Index rose about 0.7%, the Nasdaq went up by about 0.8% and the Dow eked out a small gain around 0.35% over that span. Volatility was prominent over the last few weeks of 2024, giving traders the last bit of action for the year.
Yesterday and today we saw major indexes decline rapidly with a few pops throughout the trading day. Profit-taking on a light volume day and concerns over Treasury yields were the main drivers.
Even with a weaker-than-expected end to the year, overall the stock market performed well in 2024. The S&P 500 gained about 25%, the Nasdaq went up about 31% and the Dow was up around 14%.
With all that said the “Santa Claus rally," a typical year-end market boost, did not materialize for the second straight year. This pattern has created a cautious sentiment entering 2025 for investors. January usually sets the tone for the new year. We have many changes and questions to follow as we turn the calendar. Changing of US presidents, new policies, FED decisions, rates, housing outlook - are all factors and contributors to how the stock market will navigate in 2025.
Some sectors I am anticipating to have volitilitiy and opportunities for investors are tech stocks, energy futures and metal futures. More to come in the new year.
Disclaimer: Past performance is not indicative of future returns. Opinions are my own. Profitable trades are not guaranteed.
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