US Stocks Drop for a Third Day; Treasuries Rally
A banner year for US stocks is ending poorly as a retreat in technology stocks extended a stretch of losses that began when the Federal Reserve cooled expectations for interest-rate cuts two weeks ago.
It was the third consecutive decline for both the S&P 500 and the Nasdaq 100, and also the third time the indexes dropped more than 1% in eight sessions. Treasuries rallied, with the 10-year yield hovering around 4.54%.
Yields had declined further after Chicago Purchasing Managers’ Index data showed an unexpected decline. Data on Monday also showed pending sales of US homes increasing for a fourth month in November to the highest level since early 2023. The Bloomberg Dollar Spot Index is on track for its best year since 2015.
This year, the so-called Magnificent Seven cohort of US tech giants has driven a 25% advance in the S&P 500, while prompting some to worry that the gains are too concentrated in a small group of names. Still, few are calling for the rally to end and none of the 19 strategists tracked by Bloomberg expects the S&P 500 to decline next year.
The S&P 500 fell 1.1% as of 4:06 p.m. New York time
The Nasdaq 100 fell 1.3%
The Dow Jones Industrial Average fell 1%
Source : Bloomberg
