Market Snapshot: Stock Performance, Commodities, Mortgage Rates, and Economic Outlook

Image Source: Krish Capital Pty Ltd

Index Update

In 2024, the Dow rose nearly 13%, the S&P 500 gained 23.3%, and the Nasdaq surged 28.6%, driven by AI excitement and hopes for Fed rate cuts. AI stocks like Nvidia (up 171%), Palantir (up 340%), and Applovin (up 713%) led the rally. Momentum slowed late in the year as the Fed took a cautious stance on easing amid inflation concerns and high valuations. Investors now await jobless claims data for insights into the labor market.

Market Movers

On Wednesday, the top gainers were  Huize Holding Limited (+16.51%), followed by New Era Helium Inc (+16.30%). On the contrary, Binah Capital Group, Inc (-16.48%) and Dave Inc. (-10.95%) declined the most the same day.

Commodities Update

Brent crude oil prices rose above $75 per barrel following reports of a 1.4-million-barrel decline in US crude inventories, marking a potential third consecutive weekly draw if confirmed by official data. Investors are optimistic about a recovery in China's economy and fuel demand, supported by President Xi Jinping's pledge for proactive growth policies. However, concerns remain over potential oversupply and uncertainty surrounding oil policy under Donald Trump's second presidential term.

Macro Update

The average interest rate for 30-year fixed-rate mortgages in the US rose to 6.97% as of December 27, 2024, up from 6.75% the previous week, marking the highest level since July. The increase reflects rising Treasury yields amid the Fed's hawkish stance. Mortgage rates are now 21 basis points higher than a year ago, despite being lower for much of 2024.

Futures Update

US stock futures rose on Thursday, signaling a positive start to the year as investors aim to extend 2024's strong gains. Bitcoin traded at $96,499 on Thursday, up 2.08% from the previous session. Over the past four weeks, it gained 0.55%, and over the last year, its price surged by 124.74%.

Market Snapshot: Stock Performance, Commodi... by Akansh AroraAkansh Arora18:02

Stocks displayed a mixed performance early on Tuesday, but throughout the trading day, they generally trended downwards. The tech-heavy Nasdaq was the hardest hit, closing at its lowest level in a month, down 175.99 points or 0.9 percent at 19,310.79. The S&P 500 fell 25.31 points or 0.43 percent to close at 5,881.62, while the Dow saw a smaller decline, decreasing by 29.51 points or 0.1 percent to 42,544.22. From a technical standpoint, the S&P 500 remains within an upward trend channel, suggesting there may still be room for growth. The 14-period Relative Strength Index (RSI) sits in a positive range. Key levels to watch are resistance at 5,950 and support at 5,830.