TheDrop Market Analysis, 12/27/24

Markets ended the week poorly as the Nasdaq carried the market downward to end the year.

Markets largely tumbled, defying this week "Santa rally" which occurred before Christmas. Now, stocks have made gradual progress in leveling their stocks to much less oversaturated levels, falling slowly and not significantly. The Nasdaq led today's losses with a decline of 1.5%, followed by the S&P with 1.1% and the Dow with 0.8%. Additionally, both the Russell 5000 index and gold fell, along with many cryptocurrencies, temporarily ending their all-time highs in the market.

Many tech stocks like Nvidia, Google, Amazon, and Apple (which was up yesterday) fell by varying margins, however Tesla led the pack with an almost 5% loss, possibly due to its oversaturation from its post-election bump, or skepticism over the economic viability of a second Trump presidency with Elon Musk at the center. Nevertheless, the stock held on to many of its gains, still well above the $400 threshold for the stock being valuable apiece.

Not many stocks rose today. Smaller stocks like Lenovo and FedEx rose because of their own isolated causes, not truly reflecting on the general market sentiments of the day.

Now might be just the right time to buy. Now that stocks fell to more reasonable levels, with many now consolidating on stable levels, it may be right to buy a couple of shares and trade the swing as these stocks rebound at the beginning of next year.

Yet, it is important to evaluate the effects of the Fed rate cut decision, as well as news of the second Trump term, before pouring capital into a gambit like stock trading, especially in a volatile environment like now. Stay informed on the news, and especially stay focused on what Trump has to say about businesses in America during his term, as he could truly sway stocks in either direction.