U.S. Stock Market Update: December 20, 2024

On December 20, 2024, U.S. stocks experienced a bounce back, transforming what could have been one of the worst market weeks of the year into a somewhat somber one.

The S&P 500 index saw an increase of 1.1% on Friday, reducing its weekly loss to 2%. Additionally, the Dow Jones Industrial Average soared by nearly 500 points, and the Nasdaq composite climbed 1%.

Inflation data released showed a key measure, favored by the Federal Reserve, was slightly lower than anticipated last month. This news provided some encouragement after the Fed's unexpected announcement on Wednesday, where it indicated that concerns surrounding inflation might prevent a more significant reduction in interest rates in 2025 than previously expected.

Market Performance on Friday

On Friday, the major U.S. stock indexes closed as follows:

• S&P 500: Increased by 63.77 points, or 1.1%, to finish at 5,930.85.
• Dow Jones Industrial Average: Gained 498.02 points, or 1.2%, closing at 42,840.26.
• Nasdaq Composite: Rose by 199.83 points, or 1%, ending at 19,572.60.
• Russell 2000: Increased by 20.87 points, or 0.9%, to reach 2,242.37.

Weekly Summary

Despite the recovery on Friday, the weekly performance still reflected losses:

• S&P 500: Down 120.24 points, or 2%.
• Dow Jones: Down 987.80 points, or 2.3%.
• Nasdaq: Down 354.13 points, or 1.8%.
• Russell 2000: Down 104.52 points, or 4.5%.

Year-to-Date Performance

Looking at the year so far, the stock market has shown favorable growth:

• S&P 500: Up 1,161.02 points, or 24.3%.
• Dow Jones: Up 5,150.72 points, or 13.7%.
• Nasdaq: Up 4,561.25 points, or 30.4%.
• Russell 2000: Up 215.30 points, or 10.6%.

stocks, market, inflation