U.S. Stock Market Update for December 20, 2024

On December 20, 2024, U.S. stocks experienced a notable increase, transforming what appeared to be one of the worst weeks for the market into only a moderately negative one. The overall positive change helped to ease some investor concerns.

Performance of Major Indexes

The S&P 500 saw an impressive rise of 1.1% on Friday, which reduced its weekly loss to 2%. Similarly, the Dow Jones Industrial Average jumped nearly 500 points, finishing strong for the day. The Nasdaq composite also rose by 1%. These gains were a relief to investors who had faced a challenging week.

Inflation Report Boosts Market Confidence

A recent report indicated that a key inflation measure favored by the Federal Reserve had come in slightly lower than expected last month. This development provided an encouraging sign for the market, especially in light of the Fed's surprising announcement earlier in the week. The Federal Reserve had expressed concerns that inflation worries might limit their ability to cut interest rates in 2025 as much as previously anticipated.

Daily Market Figures

On Friday:

• The S&P 500 rose by 63.77 points, or 1.1%, closing at 5,930.85.
• The Dow Jones Industrial Average climbed 498.02 points, or 1.2%, to finish at 42,840.26.
• The Nasdaq composite experienced an increase of 199.83 points, or 1%, closing at 19,572.60.
• The Russell 2000 index of smaller companies also saw growth, rising 20.87 points, or 0.9%, to 2,242.37.

Weekly Performance Summary

This week's performance concluded as follows:

• The S&P 500 is down 120.24 points, or 2% for the week.
• The Dow is down 987.80 points, or 2.3% for the week.
• The Nasdaq is down 354.13 points, or 1.8% for the week.
• The Russell 2000 is down 104.52 points, or 4.5% for the week.

Year-to-Date Statistics

Looking at year-to-date figures:

• The S&P 500 is up by 1,161.02 points, or 24.3%.
• The Dow has increased by 5,150.72 points, or 13.7%.
• The Nasdaq composite has surged 4,561.25 points, or 30.4%.
• The Russell 2000 index has risen by 215.30 points, or 10.6%.

Overall, while the week ended with some losses, the Friday rebound offered a fresh sense of optimism for investors as they look ahead.

stocks, market, indexes