On December 18, 2024 at 10:18 AM, Lisa Pauline Mattackal and Purvi Agarwal reported on Wall Street's main indexes. The markets were subdued as investors awaited an interest rate cut from the Federal Reserve and clues on 2025 policy. The Fed is widely expected to reduce rates by 25 basis points at its meeting, with the announcement at 2 p.m. ET. More focus is on the SEP and the "dot plot" as recent data shows both growth and inflation. Chair Jerome Powell's comments will also be closely watched.
Market Performance and Key Stocks
At 9:45 a.m. ET, the Dow Jones Industrial Average rose 65.44 points or 0.15% to 43,514.59. The S&P 500 lost 5.81 points or 0.10% to 6,044.65, and the Nasdaq Composite lost 20.19 points or 0.10% to 20,088.87. Most rate-sensitive megacap and growth stocks were down, with Tesla leading the decline, dropping 2.7% after a recent rally. On the other hand, AI giant Nvidia was up 3.8% after hitting a two-month low. Yield on the benchmark 10-year Treasury bond ticked higher, adding pressure on rate-sensitive stocks. Birkenstock advanced 7.8% after beating market expectations, while General Mills fell 4% after slashing its profit forecast. The Dow is set to end a nine-session losing streak, boosted by healthcare stocks. Dow-component Merck gained marginally after signing a deal with Hansoh Pharmaceuticals.Despite some uncertainty over future Fed policy, stocks are on track to end the year strongly. The S&P 500 is up nearly 27%, the Nasdaq up nearly 34%, and the Dow up over 15%. The rally has been driven by technology companies capitalizing on AI euphoria, a lower rate environment, and hopes of pro-business policies from the incoming Donald Trump administration. Crypto-focused stocks slipped as bitcoin fell 1.9%, with MARA Holdings and Riot Platforms down 2.1% and 1.9% respectively. Advancing issues outnumbered decliners on the NYSE and Nasdaq. The S&P 500 posted three new 52-week highs and five new lows, while the Nasdaq Composite recorded 48 new highs and 47 new lows.You May Like
