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Dow closes down 400 points as Wall Street limps into year-end

A specialist trader works at his post on the floor at the New York Stock Exchange (NYSE) in New York City.
Brendan McDermid | Reuters

Stocks moved lower Monday in one of the final trading sessions of 2024, as a banner year for investors appears to be ending on a sour note.

The Dow Jones Industrial Average lose 418.48 points, or 0.97%, to close at 42,573.73. The S&P 500 fell 1.07% to 5,906.94, and the Nasdaq Composite slid 1.19% to 19,486.78.

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Trading was choppy throughout the day, and the Dow was down more than 700 points at session lows. There was no apparent news catalyst for Monday's decline, and trading was expected to be light given the shortened week. The SPDR S&P 500 Trust (SPY) had about 47 million shares in total trading volume, a relatively low amount for a day with a significant market decline.

The major averages are heading into the year-end shy of record levels, with the S&P 500 and Dow up about 24% and 13%, respectively, and on track for the best year since 2021. The Nasdaq has gained almost 30% in 2024 and is on pace for its longest quarterly winning streak since 2021.

However, some worries have mounted that the market may be losing momentum, with what appears to be year-end profit-taking after the major averages notched losing sessions Friday. Large tech stocks struggled again Monday, with shares of Tesla losing 3.3% and Meta Platforms falling 1.4%. Chip giant Nvidia did rise 0.4%, helping to stem losses elsewhere.

"I really think we're going to take a pause this next year," Jeremy Siegel, senior economist at WisdomTree and emeritus professor of finance at University of Pennsylvania's Wharton School of Business, said Monday on CNBC's "Squawk on the Street."

"I think the probability of a correction next year, which is defined as a 10% drop in the S&P, is getting higher," Siegel said. "The major forces to propel things upward I think have already been built in."

Trading in the bond market could also be contributing to the pullback in tech stocks. The 10-year Treasury yield traded above 4.6% last week, though it retreated Monday.

Investors are hoping that stocks will find their footing again and trigger what's known as a Santa Claus rally. The phenomenon refers to the market rising into the final five trading days of a calendar year and the first two in January. The S&P 500 has returned 1.3% on average during this period since 1950, according to LPL Financial. 

Instead, the S&P 500 has now fallen more than 1% in each of the past two trading sessions. This is the first time that has happened twice in the last five business days of the year since at least 1952, according to Bespoke Investment Group.

However, investors shouldn't worry too much about late-year weakness, Tom Lee, Fundstrat's head of research, said Monday on "Squawk Box."

"It is not a liquid environment because we're in the final two days of the year," Lee said. "Strangely, if the last week of December is weak, I actually think it bodes well for a rebound in the first week of January."

The upcoming days are a light period for economic data, with the market closed Wednesday in observance of New Year's Day. The Chicago purchasing managers index for December did miss expectations on Monday, coming in at 36.9. Economists surveyed by Dow Jones were expecting a reading of 42.2.

Stocks slide into the close

Stocks took a leg lower in the final minutes of trading, with the Dow closing down about 418 points. The S&P 500 and Nasdaq Composite each dropped more than 1%.

For the S&P 500, this is the first time since at least 1952 that the index has had two declines of 1% or more in the last five trading days of the year, according to Bespoke Investment Group.

— Jesse Pound

Nvidia is the only Dow gainer on the day

The Dow may have cut its losses during Monday's session, but only one name in the 30 stock is average is positive on the day.

Chipmaker Nvidia is up 1.7% in afternoon trading, helping to hold down losses in the Dow and other large cap indexes. Disney is the next best performing Dow member, with a decline of less than 0.2%.

The good news is that the losses are modest across the board. Boeing is the worst performing Dow stock on the day, with a decline of 1.8%.

— Jesse Pound

ConocoPhillips among the names that could rebound in 2025

ConocoPhillips may be poised for big gains over the next several months, according to Wall Street.

Shares of the Texas-based oil company have fallen around 16% year to date, but that could take a turn in 2025, as analysts anticipate about 38% upside.

For instance, Jefferies recently named ConocoPhillips its top pick heading into the new year, noting it has been lagging U.S. peers.

"In our view COP has the best duration of oil weighted assets in our E&P coverage coupled with downside protection from a strong balance sheet," analyst Lloyd Byrne, who has a buy rating on the stock, said in a recent note to clients. "COP is our top pick in '25 on the expectation management / investors will hone in on a sustainable [free cash flow] yield, which we believe the market is misjudging, as the company approaches a '26 capex roll-off for key growth projects."

Other names that made the screen include steel producer Nucor and biotechnology company Regeneron Pharmaceuticals. Those stocks have fallen more than 33% and 19%, respectively, in 2024.

CNBC Pro subscribers can read more here.

— Sean Conlon

Siegel says chance of a 10% market correction is rising

The chances of a market correction are creeping up as the tech-led 2024 rally fades into year-end, according to Siegel.

"I really think we're going to take a pause this next year," Siegel said Monday on CNBC's "Squawk on the Street." "I think there might be some disappointment, as time has gone on. I think the probability of a correction next year, which is defined as a 10% drop in the S&P, is getting higher. ... The major forces to propel things upward I think have already been built in."

With the sell-off into the end of the year, the S&P 500 is now more than 3% off its record high from Dec. 6. However, the index is still up 23% in 2024, on pace for its best yearly performance since 2021.

Siegel pointed out that this would mark the second time in history that the S&P 500 rallied more than 20% in two straight years. The first time was 1998 and 1999, followed by a dotcom bubble burst in 2000, he said.

— Yun Li

Natural gas futures jump following forecasts of colder-than-usual January on the East Coast

Natural gas February futures prices gained nearly 19% and hit a new 52-week high on the heels of forecasts of colder-than-usual temperatures in January.

An updated outlook by The Weather Company and Atmospheric G2 released Sunday revealed that the temperature forecast for January is expected to be colder than average in the East.

The report also said that colder temperatures in the region may reach a peak by mid-month and will likely be "much farther below average" versus the entire month's forecast for that part of the U.S. It's still uncertain what temperatures will look like in the second half of the month.

Natural gas, which is used for home heating, has also had a substantial run this year, with prices rising nearly 9% in the past week and about 58% in 2024.

— Sean Conlon

Stocks making the biggest midday moves: MicroStrategy, Boeing and more

These are the stocks moving the most in midday trading:

  • MicroStrategy — The crypto stock slid 7.7% after the company disclosed in a regulatory filing a sale of more than 592,000 shares that took place between Dec. 23 and Dec. 29.
  • Boeing — The aircraft stock shed 2% after South Korea ordered an inspection of all 737-800 planes operated by domestic carriers following the deadly Jeju Air crash over the weekend, which involved a plane of that model.
  • Nvidia — The leading AI chipmaking stock added 1%, bucking the broader market downtrend and tech sell-off.

— Lisa Kailai Han

Stocks off their lows

The major market averages had trimmed their losses by midday trading. The Dow is now down less than 400 points after falling more than 700 at session lows.

The S&P 500's losses for the day are back under 1%.

Nvidia has helped improve the picture for stocks, gaining about 1% even as other major tech stocks continue struggle.

— Jesse Pound

Nearly all S&P 500 stocks trade down

More than 98% of members of the broad S&P 500 headed for losses on Monday as the market tumbled.

The broad index slid about 1.5% in the session, pulled down by the overwhelming majority of its stocks trading in the red. In total, 496 of 503 total members were lower in late morning trading.

Enphase Energy led the way down with a drop of more than 5%. Cognizant Technology Solutions followed with a slide of more than 3%.

Still, the seven advancing names capped losses for the benchmark index. EQT and Coterra Energy were the best-performing stocks in the S&P 500 with jumps of more than 3% each. Megacap tech stock Nvidia was also among the gainers, posting a rise of 0.4%.

— Alex Harring

MicroStrategy slides as company announces more stock sale to buy bitcoin

MicroStrategy shares were last down more than 7% as cryptocurrency prices declined and the company announced it sold additional stock to buy up more bitcoin.

The company disclosed in a filing that the sale totaled 592,987 shares between Dec. 23 and Dec. 29, equaling about $209 million in proceeds. MicroStrategy said it acquired about 2,138 bitcoins as a result at an average price of $97,837.

As of Dec. 29, the company said it held about 446,400 bitcoins.

— Samantha Subin

Dow sell-off threatens quarterly gain

Monday's sharp drop in the Dow erased its entire gain for the fourth quarter.

With Monday morning's slide, the Dow was down about 0.04% compared with the start of 2024's final quarter, as of shortly after 10:30 a.m. ET. Heading into Monday's session, the 30-stock index was up around 1.6% quarter to date.

It was the only of the three major indexes in the red for the quarter, as of shortly after 10:30 a.m. ET. However, despite recent choppiness, the blue-chip index is still higher by more than 12% in 2024.

— Alex Harring

Thin trading could exacerbate market moves

Adam Crisafulli, founder of Vital Knowledge, noted that thin trading in the holiday week could trigger wild swings in stocks.

"Keep in mind too that trading is characterized this week by extremely thin volume, liquidity, and attendance, which creates a lot of air pockets, exacerbating moves in both directions," he said in a note Monday.

That being said, the tech-led sell-off on Friday did unsettle investors and prompted many to wonder whether the group could be setting up for a period of profit taking after an impressive bout of outperformance this year, he added.

— Yun Li

NYSE, Nasdaq to close on Jan. 9 for national day of mourning

The New York Stock Exchange and the Nasdaq will both be closed on Jan. 9 for a national day of mourning following the death of former President Jimmy Carter.

"Jimmy Carter, with humble roots as a farmer and family man, devoted his life to public service and defending our freedom," Lynn Martin, president of NYSE Group, said in a statement. "During his noteworthy post-presidential life, President Carter left an enduring legacy of humanitarianism. The NYSE will respectfully honor President Carter's lifetime of service to our nation by closing our markets on the National Day of Mourning."

— Jesse Pound

Pending home sales increase tops expectations

Pending home sales ticked higher in November, posting gains for the fourth consecutive month, the National Association of Realtors reported Monday.

The NAR's pending home sales index rose 2.2% on the month, hitting its highest level in a year. Economists surveyed by Dow Jones had been looking for an increase of just 0.7% following October's 2% growth.

— Jeff Cox

Chicago business measures tumbles in December

Factory activity in the Chicago area declined more than expected in December, the Institute for Supply Management reported Monday.

The Chicago Business Barometer slumped to 36.9 on the month, down from 40.2 in November and below the 42.2 consensus estimate from Dow Jones.

The index measures the percentage of businesses that report expansion, so any reading below 50 indicates contraction.

—Jeff Cox

More than 80% of S&P 500 trade below key technical level

The recent stretch of bad breadth on Wall Street got worse on Monday. As of 9:43 a.m. ET, 83% of S&P 500 stocks traded below their 50-day moving average, a key level watched by traders to gauge short-term momentum.

A look at the longer-term 200-day moving average isn't great either, with 238 stocks in the benchmark trading below that level. On top of that, more than half of S&P 500 stocks were below both their 50-day and 200-day moving averages.

— Fred Imbert

Stocks open lower on Monday

The major market averages opened sharply lower on Monday. The Dow was briefly down more than 500 points in the opening minutes of trading.

— Jesse Pound

Tech stocks fall in premarket as investors attempt to scoop up gains

Stock market information displayed at the Nasdaq MarketSite in New York, US, on Monday, Aug. 5, 2024. 
 Michael Nagle | Bloomberg | Getty Images
Stock market information displayed at the Nasdaq MarketSite in New York, US, on Monday, Aug. 5, 2024. 

Major tech stocks slid before the market's open on Monday as investors engaged in profit-taking.

Software maker Palantir dipped 2.6%, pulling back just a bit from its massive year-to-date rally of nearly 361%. Palantir has been the top-performing stock in the S&P 500 in 2024 and has raced ahead this month on the back of an army contract worth up to $619 million.

Tesla and Nvidia, meanwhile, shed 2.3% and 1.6%. Tesla's jumped about 25% this month alone, extending gains after its election-fueled rally. Nvidia is in the red for the month but the AI darling is still up more than 176% year-to-date.

Megacap tech giants Amazon, Alphabet and Apple each lost roughly 1%, and Microsoft edged lower by about 0.8%.

— Pia Singh

See the stocks moving before the bell

Here's some of the stocks making notable premarket moves on Monday:

See the full list here.

— Alex Harring

Treasury yields retreat

U.S. Treasury yields pulled back on Monday morning after Friday's advance in the 10-year's pressured stocks.

The 10-year Treasury yield slid more than 4 basis points to 4.575% on Monday, notably trading below the closely followed 4.6% level. The 2-year Treasury yield also fell around 4 basis points, last sitting at 4.285%.

— Alex Harring

Small cap index headed for worst month in two years

A specialist trader works at his post on the floor at the New York Stock Exchange on Nov. 27, 2024.
Brendan McDermid | Reuters
A specialist trader works at his post on the floor at the New York Stock Exchange on Nov. 27, 2024.

The small cap benchmark Russell 2000 is down 7.81% in December so far, which would be the worst month for the index since September 2022.

That stat will hold unless the Russell 2000's monthly loss exceeds 9.73%.

The Russell 2000 is still up 10.73% for the year, though those gains are well behind the large cap averages.

— Jesse Pound

Equity futures extend losses

Stock futures took a sudden leg down at around 7:40 a.m. ET. Dow futures are now down more than 300 points.

There was not a catalyst for the move that was immediately clear. Trading days around holidays often have light volume and can be susceptible to sharp moves.

— Jesse Pound

Boeing shares fall after South Korea orders B737-800 inspection

The wreckage of the Jeju Air aircraft that went off the runway and crashed lies at Muan International Airport, in Muan, South Korea, December 30, 2024. 
Kim Hong-ji | Reuters
The wreckage of the Jeju Air aircraft that went off the runway and crashed lies at Muan International Airport, in Muan, South Korea, December 30, 2024. 

Boeing traded 4% lower in the premarket Monday after the South Korean government ordered an inspection of all B737-800 planes following a deadly Jeju Air crash over the weekend.

Acting President Choi Sang-mok told the country's transport ministry to conduct emergency safety inspection of South Korea's entire airline operation system. Officials at the Ministry of Land, Infrastructure, and Transport (MOLIT) also said they would conduct a "comprehensive special inspection of the B737-800."

— Leslie Josephs, Fred Imbert

European markets open lower

General view of the City of London skyline and a Christmas tree installation
Vuk Valcic | Sopa Images | Lightrocket | Getty Images
General view of the City of London skyline and a Christmas tree installation

European markets edged lower at the opening bell on Monday, in what will be the region's last full trading day of 2024.

Markets in Europe will close early on Tuesday for New Year's Eve, and remain shuttered on Wednesday for the New Year's Day holiday.

At 8:11 a.m. London time on Monday, the pan-European Stoxx 600 index was 0.4% lower, with all sectors and major bourses firmly in negative territory. Industrials, media and technology stocks led the losses.

Read the latest updates on European stocks here.

— Chloe Taylor

Where the major averages stand heading into the end of 2024

Here's where the major averages stand heading into the final trading week of 2024.

Dow Jones Industrial Average:

  • Down 4.3% this month and headed for worst monthly performance since April
  • Up 1.6% this quarter and headed for fourth positive quarter in five
  • Up 14.1% in 2024 and headed for best year since 2021

S&P 500:

  • Down 1% this month and on track for worst month since April
  • Up 3.6% this quarter and on pace for a fifth straight positive quarter for the first time since 2021
  • Up 25.2% this year and headed for best year since 2021

Nasdaq Composite:

  • Up 2.6% this month
  • Up 8.4% this quarter for a fifth straight quarter and its longest winning streak since the second quarter of 2021
  • Up 31.4% on the year for its fifth positive year in six

— Samantha Subin, Chris Hayes

Stock futures open little changed

Stock futures opened little changed as Wall Street kicked off the final trading week of the year.

Futures tied to the Dow Jones Industrial Average were flat, while S&P 500 futures edged up 0.04%. Nasdaq-100 futures rose 0.1%.

— Samantha Subin

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