{"id":48581,"date":"2024-12-17T22:28:36","date_gmt":"2024-12-17T22:28:36","guid":{"rendered":"https:\/\/thestockmarketwatch.com\/stock-market-news\/market-recap-sp-500-nasdaq-retreat-from-record-highs-as-fed-decision-looms\/48581\/"},"modified":"2024-12-17T22:28:36","modified_gmt":"2024-12-17T22:28:36","slug":"market-recap-sp-500-nasdaq-retreat-from-record-highs-as-fed-decision-looms","status":"publish","type":"post","link":"https:\/\/www2.stockmarketwatch.com\/stock-market-news\/market-recap-sp-500-nasdaq-retreat-from-record-highs-as-fed-decision-looms\/48581\/","title":{"rendered":"Market Recap: S&P 500, Nasdaq Retreat from Record Highs as Fed Decision Looms"},"content":{"rendered":"

The U.S. stock market experienced a mixed session on Tuesday, December 17, 2024, as investors eagerly awaited the Federal Reserve’s final rate decision of the year. The S&P 500<\/a> (^GSPC) fell 0.4% to 6,050.61<\/b>, retreating from its recent all-time high. The Dow Jones<\/a> Industrial Average (^DJI) dropped 0.61% to 43,449.90<\/b>, marking its eighth consecutive day of losses\u2014the longest losing streak since 2018. Meanwhile, the Nasdaq Composite (^IXIC) edged down 0.32% to 20,109.06<\/b>, pulling back from the record high set the previous day.<\/p>\n

Why Was the Market Down Today?<\/h2>\n

Several factors contributed to today’s market performance:<\/p>\n

1. Fed Rate Decision Anticipation<\/b>: Investors are bracing for the Federal Reserve’s announcement on Wednesday. While a 25 basis point cut is widely expected, market participants are keenly awaiting guidance on future policy moves.<\/p>\n

2. Strong Retail Sales Data<\/b>: November retail sales data, released before the market opened, showed a 0.5% increase month-over-month, in line with economists’ expectations. This robust consumer spending data may influence the Fed’s decision-making process.<\/p>\n

3. Rising Treasury Yields<\/b>: The yield on the 10-year Treasury note climbed above 4.42%, reaching a three-week high. This increase in yields put pressure on growth stocks, particularly in the technology sector.<\/p>\n

4. Nvidia<\/a>’s Correction<\/b>: The AI chip giant Nvidia<\/a> (NVDA<\/a>) fell into correction territory, ending the day about 11% off its recent closing high. This pullback in a key market leader weighed on overall sentiment.<\/p>\n

Major Stock Movements<\/h2>\n

Several notable stocks made headlines today:<\/p>\n

– Tesla (TSLA<\/a>)<\/b>: The electric vehicle maker saw its stock rise nearly 3% in premarket<\/a> trading, building on the previous day’s 6% rally.
– Broadcom (AVGO<\/a>)<\/b>: The semiconductor company hit a new high, gaining about 11% and reaching a market capitalization above $1 trillion.
– Albertsons Companies (ACI<\/a>)<\/b>: The grocery chain saw its stock rise 1% after multiple brokerages raised their price targets, with Telsey Advisory Group upgrading it to “outperform.”
– Crypto-related stocks<\/b>: Companies like Hut 8 (HUT<\/a>), Marathon Digital Holdings (MARA<\/a>), and Riot Platforms (RIOT<\/a>) all rose more than 2% as Bitcoin surpassed $107,000.<\/p>\n

Upcoming Market Events<\/h2>\n

Investors should keep an eye on these key events in the coming days:<\/p>\n

1. Federal Reserve Rate Decision<\/b>: The Fed’s announcement on Wednesday will be crucial for market direction. While a rate cut is expected, the focus will be on the central bank’s projections for 2025.<\/p>\n

2. TikTok Ban Decision<\/b>: The popular social media app has asked the Supreme Court to block a law that could effectively ban it in the U.S. by January 19, 2025. This decision could impact tech stocks and social media companies.<\/p>\n

3. Earnings Reports<\/b>: While not specified in the search results, investors should watch for any major earnings announcements that could move the market in the coming days.<\/p>\n

Market Outlook<\/h2>\n

Despite today’s pullback, the U.S. stock market remains on track for a strong year-end performance. The S&P 500 is up over 27% year-to-date, poised for its best year since 2019. However, investors should remain cautious due to several factors:<\/p>\n

– Inflation Concerns<\/b>: If inflation persists above the Fed’s target in the new year, the market may be overly optimistic about the number of rate cuts in 2025.
– Sector Rotation<\/b>: The market is recognizing that there are other AI beneficiaries besides Nvidia<\/a>, which could lead to shifts in sector leadership.
– Political Uncertainty<\/b>: With President-elect Donald Trump set to take office, his policies could significantly impact various sectors, including technology and international trade.<\/p>\n

As we approach the end of 2024, investors should stay informed about these key market drivers and maintain a diversified portfolio to navigate potential volatility in the coming year.<\/p>\n","protected":false},"excerpt":{"rendered":"

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