Stock market enters final stretch of 2024: What to know this week
Published On Dec 29, 2024, 7:47 AM
In the final trading days of 2024, the stock market has shown strong performance, with the Nasdaq up over 30% and the S&P 500 gaining more than 25%. A holiday-shortened trading week is set to be subdued with limited economic data releases. Although historically, the "Santa Claus Rally" period often leads to positive January performance, recent market declines raise caution. The 10-year Treasury yield has risen sharply, which could impact stock performance negatively. Despite high valuations and rising interest rates, many are still optimistic about US equities, though there is concern that increasing volatility may arise as the market approaches 2025.
Stock Forecasts
SPY
Negative
Despite the recent dip, confidence remains in US equities due to expected earnings growth; however, high valuations and rising rates introduce volatility risks.
QQQ
Negative
With a potential impact from rising rates, particularly if the 10-year yield remains high, short-term pressure on tech stocks is likely, suggesting caution.
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