Market Turbulence: Holiday Cheer Slumps on Wall Street

Wall Street's holiday rally ends with major benchmarks slumping as tech and growth stocks decline. Rising U.S. Treasury yields impacted growth stocks, particularly major tech companies. Despite Friday's losses, indices were set for weekly gains. News of mergers and activist investors offered some companies relief from broader sell-offs.

Wall Street's holiday cheer ended abruptly as all main benchmarks tumbled in a broad sell-off, affecting tech and growth stocks. The Dow Jones Industrial Average fell 422.63 points, a 0.98% drop, breaking its five-session winning streak after a 10-session decline.

The S&P 500 and Nasdaq Composite also slipped, thwarting the traditional Santa Claus rally that typically boosts stocks late December into early January. 'If nothing else, today is a reminder that just because a Santa Claus rally is a statistical likelihood, it is far from guaranteed,' commented Steve Sosnick, chief market strategist at Interactive Brokers.

U.S. Treasury yields rising to a seven-month high drew investor attention, impacting growth stocks by increasing borrowing costs. Consequently, giant tech stocks, part of 2024's market rally, also saw declines. Meanwhile, news like Amedisys' merger and activist movements offered brief respite to some stocks.

(With inputs from agencies.)