The much-anticipated “Santa Rally” has fallen flat this year, with U.S. stocks closing out 2024 on a disappointing note.
For only the third time in history, the year-end trading period has ended with consecutive losses for the major indices, leaving investors without the seasonal boost they had hoped for. Meanwhile, Bitcoin has shed $15,000 from its peak, adding to the gloom.
Stock market wraps up 2024 with rare year-end decline
U.S. markets have struggled through the final days of December, typically characterized by gains. Stock futures painted a bleak picture on Monday, with Dow Jones futures dropping by 81 points or 0.19%. The S&P 500 fell 0.16%, while Nasdaq-100 futures remained flat. Despite these setbacks, 2024 has been a strong year overall. The S&P 500 has gained 25.2%, the Dow is up 14.1%, and the Nasdaq Composite has surged 31.4%.
However, December has been challenging, with the S&P 500 slipping 1% and the Dow down 4.3%, marking their worst monthly performances since April. Historically, the “Santa Rally” period, which includes the last five trading days of December and the first two in January, delivers an average S&P 500 gain of 1.3%. This year, a combination of Friday’s selloff and year-end profit-taking has derailed those expectations.
Nasdaq outshines while Dow lags
The Nasdaq Composite remains a bright spot despite broader market struggles. It has risen 8.4% in the fourth quarter, marking its longest winning streak since 2021. The S&P 500 has also seen a fifth straight positive quarter, gaining 3.6%. The Dow, however, has underperformed, scraping by with a modest 1.6% increase this quarter.
The disparity among indices highlights the uneven nature of this year’s market performance. Tech-heavy stocks have driven much of the Nasdaq’s success, while the Dow’s reliance on traditional industries has weighed its results.
Bitcoin loses momentum amid market cooldown
Bitcoin’s rally has taken a hit in cryptocurrency after reaching an all-time high of $108,400 earlier this year. Currently valued at $93,420, Bitcoin is down $15,000 from its peak. The decline comes after months of enthusiasm driven by President Donald Trump’s pro-crypto policies.
Other cryptocurrencies, including Ether and Dogecoin, are also under pressure as expectations for Federal Reserve rate cuts ease. Despite its recent struggles, Bitcoin remains up 120% for the year, far surpassing the returns of traditional investments like stocks and precious metals. Investors are now eyeing Trump’s January 20 inauguration for further details on his cryptocurrency agenda.
The post Santa Rally Falls Short as U.S. Stocks See Consecutive Losses and Bitcoin Drops $15,000 first appeared on Coinfea.
