December stocks face challenges despite strong 2024 gains

### U.S. Stocks Face December Decline Despite Strong 2024; Investors Brace for Potential Headwinds Amid Fed Signals and Rising Yields

Published

1 year ago

December 23, 2024

ticker NEWS

December has brought disappointing returns for U.S. stocks, prompting investors to hope for an upturn.

Despite a strong performance overall in 2024, the benchmark S&P 500 is facing challenges this month.

Historically, the last week of December into early January has seen gains, known as the “Santa Claus Rally,” averaging a 1.3% increase.

However, this year may not follow tradition.

The S&P 500 experienced its largest drop since August after unexpected signals from the Federal Reserve regarding interest rates in 2025.

Negative territory

Furthermore, the breadth of market performance is concerning, with eight of eleven sectors in negative territory for December and the equal-weight S&P 500 down 7%.

Rising Treasury yields are also a worry, with 10-year yields reaching 4.55%, the highest in over six months.

Given the S&P 500’s current trading at 21.6 times forward earnings, significantly above the historical average of 15.8, higher yields could pressure stock valuations.

Market strategist Matt Maley noted that investors are recognising the stock market’s high valuations as the Federal Reserve maintains a tighter stance than anticipated.

Yet, this week’s market pullback could have a silver lining.

It may help mitigate excess optimism in equities, potentially positioning the market for a rebound.

AI fears rattle global markets and investors

AI developments cause market volatility, with European software and US tech firms facing significant declines amid rising uncertainty.

Published

3 hours ago

February 16, 2026

Harvey Vargas

AI developments cause market volatility, with European software and US tech firms facing significant declines amid rising uncertainty.

Global stock markets are experiencing heightened volatility as concerns about AI disruption sweep across industries. Investors are closely monitoring which sectors could be most affected as the technology continues to evolve.

Recent announcements from major US AI companies sent waves through international markets, highlighting the interconnected nature of global finance and technology. European software giants such as Dassault Systèmes and RELX saw significant declines, underscoring the global reach of AI developments.

UBS analysts warn that the impact of AI disruption could intensify in 2026 and 2027, with potential ramifications for a wide range of sectors.

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Money

U.S. stocks falling amid AI worries and weak earnings

U.S. stocks decline amid AI concerns, defensive sectors rising; traders eye commodities, jobs data, and currency trends for insights.

Published

3 days ago

February 13, 2026

Harvey Vargas

U.S. stocks decline amid AI concerns, defensive sectors rising; traders eye commodities, jobs data, and currency trends for insights.

U.S. stocks are tumbling as investors grow concerned over AI profitability and disappointing earnings. Defensive sectors are attracting attention ahead of the upcoming CPI report, while market participants are carefully watching how tech-heavy AI stocks are influencing broader indices. Steve Gopalan from SkandaFX notes that these factors are shaping market sentiment.

For traders, commodities like gold and oil are also playing a role in sentiment, providing hedges amid market uncertainty. The January jobs report and unemployment data are adding further context, with potential implications for Federal Reserve policy.

Market expectations for rate cuts are shifting as investors weigh economic indicators against global market dynamics. Traders are also eyeing currency movements, including the Australian Dollar and Japanese yen, for signs of broader economic trends.

Money

Wall Street tumbles as tech stocks face AI disruption fears

Wall Street falters as tech stocks dive amid AI anxieties; 2026 seen as critical for proving AI investment returns.

Published

3 days ago

February 13, 2026

Harvey Vargas

Wall Street falters as tech stocks dive amid AI anxieties; 2026 seen as critical for proving AI investment returns.

Wall Street took a sharp hit as tech stocks plummeted amid growing investor anxiety over artificial intelligence. Markets reacted strongly to uncertainty about how AI could disrupt major sectors, leaving investors on edge. Kyle Rodda from Capital.com explains why investors are nervous about what’s ahead.

Cisco Systems’ quarterly results added to the market jitters, while defensive sectors gained attention as investors sought safer bets. Analysts describe 2026 as a ‘prove it’ year for AI, with companies needing to demonstrate real returns on their ambitious investments.

The January Consumer Price Index report and rising concerns over AI’s impact on transportation companies further weighed on sentiment. Investors are now closely watching major tech firms for signals on how AI spending will shape future market performance.

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