Wall Street heads into the new week with a year-end rally in doubt
December is a seasonally strong period for stocks. But an unusually weak stretch has investors wary.
TL;DR
- The S&P 500 and Nasdaq Composite are lower for December, marking an unusual decline for the month.
- The S&P 500 is on track to end a seven-month rally and is struggling to stay above its 50-day moving average.
- Bond market signals, including a tightening yield curve globally, are a concern.
- Potential appointment of Kevin Hassett to the Federal Reserve Board could worry investors due to fears of aggressive rate cuts.
- Other market concerns include a pending Supreme Court ruling on tariffs and frothy AI valuations.
- Industrials and financials are sectors that may benefit from future market shifts.
- The traditional Santa Claus rally period, typically the last five trading days of the year and the first two of the next, could be impacted by recent negative trends.