Wall Street engages in substantial selling of major tech companies, resulting in a 500-point decline for the Dow.
The Dow saw a decline of over 500 points by noon, the S&P 500 dropped by 1.6% and the Nasdaq Composite fell by 2.2% due to a selling spree in tech giants' stocks.
Market volatility was pronounced during this holiday-shortened week, amplifying any price shifts. However, be not alarmed; large-scale market fluctuations have emerged as a pattern of sorts during Christmas week, as trading activities can significantly impact stock indices with numerous traders on leave.
Bitcoin's fierce late-year surge started to wane away, as investors opted for profit-taking. The digital currency plummeted to roughly $93,900 on Friday after peaking at $106,000 earlier this month, fuelled by speculation that President-elect Donald Trump might foster a welcoming environment for cryptocurrencies when he resumes his presidency next month.
Friday also saw an increase in treasury yields, with the 10-year surpassing 4.6%, which might induce some investors to shift their focus away from equity markets.
Based on future projections, Anthony Valeri, investment management director at California Bank & Trust, believes that stocks have a higher probability of outperforming bonds, even following a two-year streak of substantial growth, in 2025. "Investors should preserve their equity exposure as they usher in the New Year," Valeri advised in a statement released on Friday. "Stocks remain the most effective strategy to combat inflation."
This story is still in progress and will be updated accordingly.
Despite the market downturn, some investors may see this as an opportunity for strategic business deals or potential investments. Furthermore, understanding the historical trend of increased volatility during Christmas week can inform investment strategies, potentially providing a window for shrewd investing decisions.
