US Stocks Slide for Third Straight Day as Treasuries See Safe-Haven Demand

us stocks fell for a third straight day for both sp 500 and nasdaq 100
Jan 3, 2025 Reading time : 2 min

A once-promising year for US Stocks marked its conclusion on a sour note. This happened because a downturn in technology shares has deepened a series of losses that started when the Federal Reserve tempered hopes for interest rate reductions two weeks ago. 

The S&P 500 and the Nasdaq 100 have not experienced three straight drops. In just eight sessions, this is the third time that these indexes have dropped by more than 1%.

The Bloomberg Dollar Spot Index, meanwhile, is about to see its best result since 2015. On Monday a surge in treasuries was seen, with the 10-year getting stabilized at 4.54%. 

Decline in US Stocks for three straight days

Yields have continued to decline, after the unexpected reduction shown at the Chicago Purchasing Managers’ Index. Moreover, the statistics released on Monday revealed that the pending sales of US homes increased for the fourth consecutive month in November. This was the highest level since the start of 2023. 

This year, the so-called Magnificent Seven group of US tech titans has propelled the S&P 500 to a gain of over 20%. This raises concerns about the concentrations of these gains among a selected few companies. 

Nevertheless, few analysts are predicting an end to the rally, and none of the 19 strategists monitored by Bloomberg foresee a decline for the S&P 500 in the upcoming year. 

Nicolas Domont, a fund manager at Optigestion in Paris has advised, “In times like these, it’s wise to hold your ground. The US continues to be the prime destination. Growth stocks are still leading the way, and earnings projections remain strong, providing ample reasons for optimism.”

In other markets, Europe’s Stoxx 600 index encountered a downturn while the Asian stocks broke a five-day winning streak. Trading was comparatively lighter because of the holiday season. The chief market analyst at Kohle Captial, Tim Waterer noted, “There’s a sense of caution as we approach year-end, partly due to uncertainty surrounding the international trade landscape for 2025. Some traders are opting to reduce their risk exposure as the year closes.”

Staff Writer
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Staff Writer
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