The Dow was more than 500 points lower by midday, the S&P 500 lost 1.6 per cent and the Nasdaq Composite was down by 2.2 per cent after a selloff in Big Tech stocks.
Trading volume was thin due to the shortened holiday week, magnifying any moves. Don’t fear: Such dramatic market moves have become something of a Christmas week tradition, as buying and selling can have a dramatic effect on stock indexes with most traders on vacation.
Bitcoin’s tremendous late-year rally also fizzled, as traders looked to profit taking. The cryptocurrency plunged to around US$93,900 Friday after topping US$106,000 earlier this month on hopes that President-elect Donald Trump will usher in a crypto-friendly administration when he returns to the White House next month.
Treasury yields rose Friday, with the 10-year passing 4.6 per cent, potentially pushing some trading out of equities.
Looking ahead to 2025, stocks are likely to outperform bonds even after a two-year run of strong performance, said Anthony Valeri, investment management director at California Bank & Trust. “Investors should maintain their equity exposure into the New Year,” he wrote in a note issued Friday. “Stocks are still the best investment to protect against inflation.”
This is a developing story and will be updated.
