U.S. stock index futures dipped lower on Monday evening following a sharp decline on Wall Street attributed to profit-taking at the close of a strong year. Investors took advantage of substantial gains accumulated throughout the year, particularly in the technology sector. Simultaneously, rising treasury yields added further pressure on equities. Higher yields make bonds more appealing to investors seeking lower-risk returns, potentially diverting capital from stocks.
Bank of America characterized megacap stocks as “expensive and crowded” in a recent note, favoring mid-cap equities for better prospects in 2025. Shares of fell over 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 Boeing 737-800 aircraft veered off the runway, colliding with a wall and bursting into flames, marking the deadliest aviation disaster in the country’s history. Despite recent losses, 2024 has been a remarkable year for U.S. equities, with all major indexes approaching record highs. The Nasdaq is poised for a roughly 30% annual gain, while the S&P 500 is projected to rise over 24%, and the Dow has climbed more than 13%, signifying the best performance for these averages since 2021