US stock futures edge lower after Wall Street slips amid year-end profit taking
Investing.com– U.S. stock index futures edged lower on Monday evening after Wall Street fell sharply amid profit-taking at the end of a strong year.
S&P 500 Futures inched 0.2% lower to 5,946.25 points, while Nasdaq 100 Futures fell 0.2% to 21,374.75 points by 18:34 ET (23:34 GMT). Dow Jones Futures were largely steady at 42,911.0 points.
Tech stocks fall amid year-end trading, higher treasury yields
Investors capitalized on substantial gains accumulated throughout the year, particularly in the technology sector.
Concurrently, rising treasury yields exerted additional pressure on equities. Higher yields make bonds more attractive to investors seeking lower-risk returns, potentially drawing capital away from stocks.
Among “Magnificent Seven” megacaps, Apple Inc (NASDAQ:AAPL) and Microsoft Corporation (NASDAQ:MSFT) declined 1.3% each, while Meta Platforms Inc (NASDAQ:META) and Amazon.com Inc (NASDAQ:AMZN) also fell.
NVIDIA Corporation (NASDAQ:NVDA) inched up 0.4%, while Tesla Inc (NASDAQ:TSLA) fell more than 3%.
Bank of America called the megacap stocks “expensive and crowded” in a recent note, while it preferred mid-cap equities for better opportunities in 2025.
Boeing slumps after South Korea crash
Boeing Co (NYSE:BA) shares fell more than 2% after a devastating air accident in South Korea claimed the lives of 179 people on Sunday when a passenger plane crash-landed at Muan International Airport.
The aircraft, a Boeing 737-800, skidded off the runway, colliding with a wall and erupting in flames, making it the deadliest aviation disaster in the country’s history.
Wall Street set for stellar yearly gains
On Monday, the S&P 500 fell 1.1% to 5,906.94 points, the Dow Jones Industrial Average lost 1% to 42,573.73, while the NASDAQ Composite declined 1.2% to 19,486.79 points.
Despite recent losses, 2024 has been a remarkable year for U.S. equities, with all major indexes nearing record highs.
The Nasdaq is on track for a roughly 30% annual gain, while the S&P 500 is set to rise over 24%, and the Dow has climbed more than 13%, marking the best performance for these averages since 2021.
Later in the week, investors will scrutinize the Institute of Supply Management’s manufacturing activity survey for December and a weekly report on jobless claims, ahead of a key employment report due in the following week.