Financial markets are wrapping up 2024 without the traditional year-end rally: stocks remain unchanged and even Bitcoin, known for its volatility, is stuck.
Santa Claus Rally Hits a Brick Wall
Wall Street's so-called Santa Claus rally, where stocks typically rise in the year's final days, faced obstacles. Hopes were dashed by mixed economic data, firm signals from the Federal Reserve, and geopolitical tensions. Meanwhile, Treasury yields have risen, negatively affecting growth stocks, particularly in the tech sector.
Wall Street's Current State
The Dow barely ended up 0.04%, while the S&P 500 dipped by 0.02%, and the Nasdaq went nowhere. The market is under significant pressure as rising yields negatively impact the outlook for growth sectors, especially large tech companies. New U.S. jobless claims data also added tension, indicating challenges in the labor market.
Bitcoin's Glory Days Feel Like Ancient History
Meanwhile, Bitcoin remains between $92,500 and $96,000, far from its December peak of $108,268. Market capitalization has fallen to $1.89 trillion, with trading volumes at about $39.59 billion. Analysts attribute this to profit-taking and decreasing liquidity due to the Fed's hawkish stance. Nonetheless, institutional interest remains high, and Bitcoin ETFs continue to attract funds.
The future of early 2025 remains uncertain: will stocks and Bitcoin break their stagnation, or will investors face another challenging year?
