As investors wrapped up the final trading week of 2024, the stock market faced significant losses, contributing to a disappointing performance for the year. The Dow Jones Industrial Average fell to a 4% drop, while the S&P 500 and Nasdaq Composite also reported declines of 3.9% and 4.5%, respectively. This trend continued over the last trading session, where the major indices all closed in negative territory. The market turbulence has been attributed to rising interest rates and persistent inflation, leading many analysts to question the sustainability of the growth witnessed over the previous years. According to Patrick O’Hare, an analyst from Briefing.com, ‘The reality is sinking in that the Fed’s efforts to combat inflation are weighing on economic activity.’ In the backdrop, the yield on the 10-year Treasury note reached a new high of 4.5% as investors sought safer assets amid the uncertainty. Although there are mixed signs of resilience in certain sectors, the overwhelming sentiment in the market reflects trepidation about the Fed’s continued policies and their impact on economic growth in 2025. Friday, December 29, saw major losses across key sectors, with technology stocks particularly hard hit, as companies such as Amazon and Alphabet experienced notable declines. The situation raises concerns about the ability of the market to recover and what this means for investors heading into the new year.
Stock Market Ends Year with Dismal Performance as Sell-Off Continues
