The Australian sharemarket is set to fall on the last day of the 2024 as US stocks are finishing their stellar year on a bad note, with a retreat in technology stocks extending a stretch of losses that began when the Federal Reserve cooled expectations for interest-rate cuts two weeks ago.
ASX futures were down 36 points, or 0.4 per cent, at 8189 as of 7.59am on Tuesday. Overnight in New York, the S&P 500 fell as much as 1.7 per cent early in the session and closed down 1.1 per cent. Apple, Microsoft and Tesla all weighed on the index. The Dow Jones Industrial Average dropped 1 per cent and the Nasdaq lost 1.2 per cent. The S&P/ASX200 shed 0.3 per cent on Monday.
It was another day of losses on Wall Street.Credit: Bloomberg
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 per cent in eight sessions. Treasuries rallied, with the 10-year yield hovering around 4.54 per cent. The Aussie dollar traded up 0.1 per cent at 62.21 US cents.
This year, the so-called Magnificent Seven cohort of US tech giants has driven a 25 per cent 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 on Wall Street to end and none of the 19 strategists tracked by Bloomberg expects the S&P 500 to decline next year.
“In these moments, it’s best to stay put,” said Nicolas Domont, a fund manager at Optigestion in Paris. “The US remains the place to be. Growth stocks continue to outperform and earnings forecasts are good, so there are good reasons to remain optimistic.”
Boeing’s shares fell 2.3 per cent in their first day of trading after the deadly crash of a 737-800, a widely used model that is a staple of low-cost airlines, at an airport in South Korea. The passenger plane, operated by Jeju Air, was carrying 181 people, and all but two were killed.
Loading
South Korea’s transportation ministry has announced inspections of the 101 Boeing 737-800 planes used by airlines in the country, including Jeju Air, which are set to be completed by Friday. Boeing said in a statement it was in contact with Jeju Air and was ready to help the airline. Jeju Air’s stock fell 8.7 per cent at the close of trading in Seoul on Monday, hitting a record low.
Elsewhere, Europe’s Stoxx 600 index retreated, while Asian stocks snapped five days of gains. Trading volumes were thinner because of the holiday season.
