The New York Stock Exchange ended in the red on Tuesday, despite opening slightly higher, concluding a successful year on a sour note.
The Dow Jones finished near balance, dropping 0.07%, the Nasdaq index lost 0.90% and the broader S&P 500 index lost 0.43%.
“The end of the year was rather disappointing, given that it was the fourth consecutive day of decline,” observed Steve Sosnick of Interactive Brokers to AFP.
“The losses of giant capitalizations” had “a considerable impact on the performance” of the indices, said Patrick O’Hare of Briefing.com in a note.
The “Magnificent Seven”, the nickname given to the big names in the technology sector, all declined, like Alphabet (-1.17%), Amazon (-0.86%), Nvidia (-2.33 %), Tesla (-3.25%) or Apple (-0.71%)
The downward movement in recent days could be attributed to “large portfolios that were redirecting their investments towards other stocks,” according to Mr. Sosnick.
Despite this gloomy end to the year, the American market had a “phenomenal” year in 2024, “the major indices having almost all progressed”, he added.
In 2024, the Dow Jones, the S&P 500 index and the Nasdaq have shattered their records on Wall Street, surpassing the milestones of 45,000, 6,000 and 20,000 points respectively.
The American market was notably driven by investors’ appetite for artificial intelligence (AI) and associated values.
The price of chip giant Nvidia jumped by more than 170% and that of Broadcom by more than 100%.
Other stocks also benefited from the political context in the United States with the announced return of Donald Trump to the White House.
The shares of Elon Musk’s Tesla group, support of the Republican official, have almost tripled since the low point reached in April, while the banking sector, another major beneficiary of the election of Donald Trump, has also advanced by almost 25 %.
Analysts, however, wonder to what extent “the forecasts (political and monetary) have already been integrated by the market”, which could “make it more sensitive to uncertainties”, raised Mr. Sosnick.
On the bond market, the yield on 10-year US government bonds rose during the day, to 4.57%, compared to 4.53% at Monday’s close, which could also have caused a blow. cold on Wall Street.
Elsewhere, on the stock market, stocks linked to the cybersecurity sector – such as CrowdStrike (-2.05%) – fell, weighed down by the announcement of a cyberattack on Monday against the American Department of the Treasury, which accused Beijing.
China hit back on Tuesday, calling the accusations “unfounded.”
The pharmaceutical group Moderna shone (+5.59%), after “rumors in the market suggest that certain companies plan to increase the price of drugs and vaccines from 2025”, according to Mr. O’Hare .
As part of discussions on its takeover by Nippon Steel, US Steel jumped (+9.54%) after press reports according to which the Japanese group had proposed to give a veto to the American government on the production capacity of the American group.
Joe Biden had already expressed his opposition to the takeover of US Steel by the Japanese steel giant, believing that the steel industry is of a strategic nature for the United States, which is the world’s leading importer of steel.
burs-ni/eb
Nasdaq
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