In the final week of 2024, financial markets are experiencing mixed sentiments. Major stock indices, including the Dow Futures, S&P 500 Futures, and Nasdaq 100 Futures, have shown slight declines. However, these indices are on track to close the year at record levels, reflecting substantial gains over the past twelve months. The S&P 500 and Dow Jones Industrial Average have risen by more than 25% and 14%, respectively, while the NASDAQ Composite has surged by over 31%. Economic data releases this week include pending home sales for November and the December Chicago PMI, but market activity is expected to be subdued due to the holiday closures.

Details of Market Performance and Key Events

As dawn breaks in the early hours of a chilly morning, the financial world is bracing for the last trading days of 2024. By 06:25 ET, the futures contracts for the Dow Jones Industrial Average were down by 0.1%, the S&P 500 Futures fell by 0.2%, and the Nasdaq 100 Futures dropped by 0.2%. Despite these minor setbacks, the major indices are poised to end the year with impressive gains. The S&P 500 and Dow Jones have seen increases exceeding 25% and 14%, respectively, marking one of the best years since 2021. Meanwhile, the NASDAQ Composite has soared by over 31%, driven by strong performances in tech stocks.

The fourth quarter has been particularly favorable, following Donald Trump's election win, with the Nasdaq set to achieve its longest quarterly winning streak since mid-2021. Economic indicators such as pending home sales for November and the December Chicago PMI will be released this week, but market activity is likely to remain limited due to the upcoming holiday closures on Wednesday.

Goldman Sachs has forecasted that the Federal Reserve will initiate interest rate cuts starting March 2025, with three consecutive reductions of 25 basis points each in March, June, and September. This series of cuts is anticipated to bring the terminal rate range to between 3.5% and 3.75%. Additionally, Goldman expects the Fed to slow its balance sheet runoff in January 2025 and halt it entirely by the second quarter.

In other news, Boeing shares plummeted by over 4% in premarket trading following a tragic air accident in South Korea. A Boeing 737-800 aircraft skidded off the runway at Muan International Airport, resulting in a catastrophic collision that claimed the lives of 179 people. This incident marks the deadliest aviation disaster in South Korea's history.

Crude oil prices also experienced slight dips, with US crude futures (WTI) falling 0.1% to $70.51 per barrel and Brent crude dropping 0.2% to $73.67 per barrel. Concerns about slowing demand in China, the world's largest oil importer, have contributed to significant losses in crude prices for 2024, with WTI down around 1.5% and Brent over 4% lower.

From a journalist's perspective, the events of this final week highlight the volatility and interconnectedness of global markets. The anticipated Fed rate cuts and the tragic aviation accident serve as reminders of the unpredictable nature of both economic and human endeavors. As we reflect on the year's achievements and challenges, it becomes evident that resilience and adaptability are crucial in navigating the complexities of modern finance and international relations.