Stock Market Update Thursday December 26, 2024
Stock Market Update Thursday December 26, 2024 The 10-year Treasury yield has reached its highest level in seven months, which has affected the stock market and slowed down the Christmas Eve rally. Major tech stocks fell in pre-market trading as investors assessed jobless claims for insights into the labor market. Bitcoin decreased by 3.85%, bringing its price down to $95,547.
In early January, the market will undergo a significant evaluation with important economic data releases, including the nonfarm payrolls report on January 10, which is expected to affect investor sentiment. Weekly jobless claims fell to 219,000, which was better than anticipated, while continuing claims rose to a three-year high of 1.91 million, but this did not affect bond yields.
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Are you prepared for 2025? Next year could be quite different from 2024, Currently, more stocks are hitting new 52-week lows than reaching new highs. Even though the market is saying "everything is fine," the strong performance of the Magnificent Seven has hidden some serious weaknesses beneath the surface recently.
Bottom Line:
Our analysis suggests that despite worries from the recent two-day pullback that started on December 18, 2024, market fundamentals and historical trends indicate a potential recovery. The Fed's dovish long-term outlook and the absence of a sell alert from our proprietary algorithm for the S&P 500 ETF SPY support this view. Quad witching conditions resemble those of previous late-year rallies. Moreover, with a cooling labor market and signs of moderating core inflation, there is a compelling case for continued strength in the equity market as the year ends. On 09/13/2024, the SPY and QQQ ETFs, our year-end outlook remains optimistic, supported by our proprietary algorithm and favorable liquidity conditions. Cash on the sidelines continues to accumulate, creating potential for a strong inflow into equities. China's PBOC has introduced significant monetary easing, adding further global stimulus.
