December 25, 2024 – Stocks gained globally on Monday, driven by Wall Street advances, while U.S. Treasury yields surged to their highest in nearly seven months. Meanwhile, weakening U.S. consumer confidence and adjustments to Federal Reserve rate expectations shaped investor sentiment.
Key Highlights
- U.S. Market Performance
- Nasdaq and S&P 500 climbed, supported by megacap tech stocks like Nvidia and Broadcom.
- The Dow Jones Industrial Average gained 66.69 points (+0.16%) to 42,906.95.
- The S&P 500 rose 43.22 points (+0.73%) to 5,974.07.
- The Nasdaq Composite advanced 192.29 points (+0.98%) to 19,764.89.
- Consumer Confidence Falls
- The Conference Board’s Consumer Confidence Index dropped to 104.7 in December, missing expectations of 113.3 and below November’s 112.8. Concerns over future business conditions weighed on consumer sentiment.
- Mixed Economic Data
- Positive: New orders for U.S.-manufactured capital goods increased in November, driven by strong demand for machinery.
- Negative: Durable goods orders fell 1.1% after a 0.8% rise in October, with commercial aircraft orders contributing to the decline.
- Treasury Yields and Dollar Surge
- The 10-year U.S. Treasury yield hit its highest level since late May, reaching 4.6%. Analysts flagged this as a key threshold for equity markets.
- A breach above this level could prompt further volatility, with some speculating a test of 5%.
- Global Market Movements
- MSCI’s Global Stock Index increased 0.65% to 849.74.
- Europe’s STOXX 600 index closed up 0.14%.
Expert Commentary
Robert Phipps, director at Per Stirling Capital Management, emphasized the pressure on equities due to weaker consumer confidence and rising yields. “The market is adjusting to a less dovish Fed policy,” he said, noting potential headwinds for equity markets if Treasury yields continue to climb.
Disclaimer
This article is for informational purposes only and does not constitute financial advice. Always conduct thorough research or consult a professional advisor before making investment decisions.
