On December 17, 2024, U.S. stock indexes experienced a notable pullback, with the S&P 500 down 0.3%, the Dow Jones Industrial Average dropping 242 points (0.5%), and the Nasdaq composite falling 0.2% [3eaa2ffa]. Nvidia's stock fell by 0.4%, marking its eighth loss in nine days and a significant decline of over 10% from its record high last month [3eaa2ffa]. This decline has raised concerns among investors about the sustainability of the current market rally [69ea0334].
Despite these setbacks, the S&P 500 is still on track for its best annual performance since 2000, up nearly 27% for the year, driven by a resilient economy and expectations surrounding President-elect Donald Trump's policies [3eaa2ffa]. A recent survey from Bank of America indicated that global fund managers are increasingly optimistic, holding low cash reserves and investing heavily in U.S. stocks, with sentiment at its highest since August 2021 [69ea0334].
The Federal Reserve's upcoming meeting on December 18 is highly anticipated, with expectations for a third consecutive interest rate cut. However, strong retail sales data, which grew more than expected, could influence the Fed's future rate decisions, potentially leading to a pause in cuts if economic indicators remain robust [3eaa2ffa][69ea0334].
In addition to Nvidia's struggles, other major stocks are also experiencing mixed results. Broadcom saw a decline of 5.1%, while Pfizer's shares rose by 4.6% following a strong profit forecast [3eaa2ffa]. Meanwhile, Bitcoin has surged past $108,000, reflecting a shift in investor interest towards cryptocurrencies amidst ongoing stock market volatility [69ea0334][3eaa2ffa].
The mixed performance of the stock market, particularly the challenges faced by Nvidia, raises questions about the potential impact of upcoming economic policies on investor sentiment and the overall market trajectory [69ea0334].