Wall Street retreated in light premarket trading on Monday as the year drew to a close, lacking the euphoria that had driven markets to record highs in 2024.
The future for S&The P 500 was down 0.4% before the bell, and Dow Jones Industrial Average futures were down 0.3%.
South Korea’s KOSPI fell 0.2% to 2,399.49, while shares of South Korean low-cost carrier Jeju Air fell 8.7% after one of its Boeing 737-800s skidded off the runway, hit a concrete wall and burst into flames. Sunday, 179 of the 181 people on board died. Authorities were investigating why the plane’s landing gear did not deploy.
The disaster was another blow to Boeing after a mechanics strike, troubled safety issues on its top-selling plane and a plunge in its stock price. Shares fell 3% in premarket trading and are down more than 30% this year.
Despite the post-Christmas slump, U.S. financial markets are nearing another stellar yearly finish. S&The P 500 is poised to rise by about 25% in 2024. This marks the first time since 1997-1998 that prices have risen more than 20% for two consecutive years.
The rise was driven in part by upbeat economic data showing continued consumer spending and a strong labor market. Inflation remains high but is steadily easing.
A wave of positive economic data and easing inflation helped trigger the Federal Reserve’s interest rate policy reversal this year. Expectations of an interest rate cut also drove the market rise. The central bank recently cut interest rates for the third time in 2024.
In Asia, Tokyo’s benchmark Nikkei 225 index fell 1% to 39,894.54. The last trading session of the year ended on a somber note with Japan Exchange Group CEO Hiromi Yamaji apologizing at a traditional year-end event for recent insider trading incidents.
“We recognize that trust in the market is essential for investors to trade with confidence,” Yamaji said. The exchange said it was working to improve training and verify independent findings, adding, “We are committed to rebuilding.” Trust us and make sure this never happens again.”
In early European trading, Germany’s DAX index was down 0.1%, the Paris CAC 40 index was up 0.2% and Britain’s FTSE 100 index was unchanged.
Hong Kong’s Hang Seng index closed 0.2% lower at 20,041.42, while the Shanghai Composite Index rose 0.2% to 3,407.33. S in Australia&The P/ASX 200 was down 0.3% at 8,235.00.
U.S. benchmark crude oil rose 28 cents to $70.88 per barrel. Brent crude oil, the international standard, rose 20 cents to $73.99 per barrel.
The dollar was traded at 157.55 yen, and the euro rose to $1.0445.
