U.S. stock index futures dipped slightly on Monday evening following a sharp decline on Wall Street as investors engaged in year-end profit-taking after a strong year for equities. By late trading, S&P 500 Futures and Nasdaq 100 Futures were both down 0.2%, while Dow Jones Futures remained steady.
Tech stocks faced notable declines amid rising treasury yields, which diverted capital towards bonds. Among the “Magnificent Seven” megacaps, Apple and Microsoft dropped 1.3% each, while Tesla fell over 3%. Bank of America recently deemed these megacap stocks “expensive and crowded,” suggesting mid-cap equities offer better opportunities in 2025.
Boeing shares slid over 2% following a tragic crash in South Korea involving a Boeing 737-800 that resulted in 179 fatalities, marking the deadliest aviation disaster in the country’s history.
Despite recent losses, 2024 has been a stellar year for U.S. markets. The Nasdaq is set for a 30% annual gain, the S&P 500 has risen over 24%, and the Dow has climbed more than 13%, marking their best performance since 2021.
Investors now await key economic data, including December’s ISM manufacturing activity survey and a weekly jobless claims report, ahead of the critical employment report expected next week.
